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Last week, you might have seen that Haynes International, Inc. (NASDAQ:HAYN) released its quarterly result to the market. The early response was not positive, with shares down 2.8% to US$23.19 in the past week. Sales of US$72m came in 3.9% ahead of expectations, although statutory earnings didn't fare nearly so well, recording a loss of US$0.65, a 16% miss. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
Taking into account the latest results, Haynes International's dual analysts currently expect revenues in 2021 to be US$346.6m, approximately in line with the last 12 months. Losses are expected to be contained, narrowing 16% from last year to US$1.21. Before this latest report, the consensus had been expecting revenues of US$346.6m and US$1.48 per share in losses. Although the revenue estimates have not really changed Haynes International'sfuture looks a little different to the past, with a favorable reduction in the loss per share forecasts in particular.
These new estimates led to the consensus price target rising 7.4% to US$29.00, with lower forecast losses suggesting things could be looking up for Haynes International.
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. Next year brings more of the same, according to the analysts, with revenue forecast to grow 0.7%, in line with its 0.6% annual growth over the past five years. Compare this with the wider industry (in aggregate), which analyst estimates suggest will see revenues grow 7.9% next year. So it's pretty clear that Haynes International is expected to grow slower than similar companies in the same industry.
The Bottom Line
The most obvious conclusion is that the analysts made no changes to their forecasts for a loss next year. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting sales are tracking in line with expectations - although our data does suggest that Haynes International's revenues are expected to perform worse than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At least one analyst has provided forecasts out to 2022, which can be seen for free on our platform here.
Even so, be aware that Haynes International is showing 2 warning signs in our investment analysis , you should know about...
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. 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.
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