Glatfelter Corporation Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now
It's been a mediocre week for Glatfelter Corporation (NYSE:GLT) shareholders, with the stock dropping 15% to US$14.54 in the week since its latest yearly results. Statutory earnings per share fell badly short of expectations, coming in at US$0.15, some 78% below analyst forecasts, although revenues were okay, approximately in line with analyst estimates at US$1.1b. The analyst typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. With this in mind, we've gathered the latest statutory forecasts to see what the analyst is expecting for next year.
Check out our latest analysis for Glatfelter
Following the latest results, Glatfelter's sole analyst are now forecasting revenues of US$1.56b in 2022. This would be a sizeable 44% improvement in sales compared to the last 12 months. Statutory earnings per share are predicted to surge 264% to US$0.55. Before this earnings report, the analyst had been forecasting revenues of US$1.53b and earnings per share (EPS) of US$1.15 in 2022. The analyst seem to have become more bearish following the latest results. While there were no changes to revenue forecasts, there was a pretty serious reduction to EPS estimates.
The average price target fell 5.3% to US$18.00, with reduced earnings forecasts clearly tied to a lower valuation estimate.
One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. One thing stands out from these estimates, which is that Glatfelter is forecast to grow faster in the future than it has in the past, with revenues expected to display 44% annualised growth until the end of 2022. If achieved, this would be a much better result than the 1.1% annual decline over the past five years. What's also interesting is that our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue decline 1.5% annually for the foreseeable future. So although Glatfelter is expected to return to growth, it's also expected to grow revenues during a time when the wider industry is estimated to see revenue decline.
The Bottom Line
The biggest concern is that the analyst reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Glatfelter. Fortunately, they also reconfirmed their revenue estimates, suggesting sales are tracking in line with expectations. Their estimates also suggest that Glatfelter's revenues are expected to perform better than the wider industry. Furthermore, the analyst also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have analyst estimates for Glatfelter going out as far as 2023, and you can see them free on our platform here.
Don't forget that there may still be risks. For instance, we've identified 5 warning signs for Glatfelter (1 can't be ignored) you should be aware of.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
