Crown Holdings, Inc. Full-Year Results: Here's What Analysts Are Forecasting For Next Year
It's been a good week for Crown Holdings, Inc. (NYSE:CCK) shareholders, because the company has just released its latest yearly results, and the shares gained 5.0% to US$79.60. It looks like the results were a bit of a negative overall. While revenues of US$12b were in line with analyst predictions, statutory earnings were less than expected, missing estimates by 2.4% to hit US$3.78 per share. This is an important time for investors, as they can track a company's performance in its report, look at what top analysts are forecasting for next year, and see if there has been any change to expectations for the business. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether analysts have changed their mind on Crown Holdings after the latest results.
View our latest analysis for Crown Holdings
Taking into account the latest results, Crown Holdings's 14 analysts currently expect revenues in 2020 to be US$11.9b, approximately in line with the last 12 months. Statutory earnings per share are expected to jump 23% to US$4.68. Yet prior to the latest earnings, analysts had been forecasting revenues of US$11.9b and earnings per share (EPS) of US$4.75 in 2020. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.
Analysts reconfirmed their price target of US$83.47, showing that the business is executing well and in line with expectations. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. Currently, the most bullish analyst values Crown Holdings at US$100.00 per share, while the most bearish prices it at US$61.00. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.
Another way to assess these estimates is by comparing them to past performance, and seeing whether analysts are more or less bullish relative to other companies in the market. We would highlight that Crown Holdings's revenue growth is expected to slow, with forecast 1.8% increase next year well below the historical 6.7%p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the market, which are in aggregate expected to see revenue growth of 2.3% next year. Factoring in the forecast slowdown in growth, it seems obvious that analysts still expect Crown Holdings to grow slower than the wider market.
The Bottom Line
The most important thing to take away is that there's been no major change in sentiment, with analysts reconfirming that earnings per share are expected to continue performing in line with their prior expectations. On the plus side, there were no major changes to revenue estimates; although analyst forecasts imply revenues will perform worse than the wider market. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Crown Holdings going out to 2022, and you can see them free on our platform here..
You can also view our analysis of Crown Holdings's balance sheet, and whether we think Crown Holdings is carrying too much debt, for free on our platform here.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.
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