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As you might know, ATN International, Inc. (NASDAQ:ATNI) recently reported its annual numbers. It looks like the results were pretty good overall. While revenues of US$439m were in line with analyst predictions, statutory losses were much smaller than expected, with ATN International losing US$0.68 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
After the latest results, the four analysts covering ATN International are now predicting revenues of US$492.6m in 2020. If met, this would reflect a meaningful 12% improvement in sales compared to the last 12 months. Earnings are expected to improve, with ATN International forecast to report a statutory profit of US$0.20 per share. Yet prior to the latest earnings, analysts had been forecasting revenues of US$500.3m and earnings per share (EPS) of US$0.40 in 2020. So there's definitely been a decline in analyst sentiment after the latest results, noting the large cut to new EPS forecasts.
It might be a surprise to learn that the consensus price target was broadly unchanged at US$69.50, with analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on ATN International, with the most bullish analyst valuing it at US$85.00 and the most bearish at US$62.00 per share. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.
It can be useful to take a broader overview by seeing how analyst forecasts compare, both to the ATN International's past performance and to peers in the same market. It's clear from the latest estimates that ATN International's rate of growth is expected to accelerate meaningfully, with forecast 12% revenue growth noticeably faster than its historical growth of 5.7%p.a. over the past five years. Compare this with other companies in the same market, which are forecast to grow their revenue 1.2% next year. It seems obvious that, while the growth outlook is brighter than the recent past, analysts also expect ATN International to grow faster than the wider market.
The Bottom Line
The most important thing to take away is that analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Happily, there were no major changes to revenue forecasts, with analysts still expecting the business to grow faster 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.
Still, the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple ATN International analysts - going out to 2021, and you can see them free on our platform here.
We also provide an overview of the ATN International Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, here.
If you spot an error that warrants correction, please contact the editor at email@example.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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