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Here's What Analysts Are Forecasting For BWX Technologies, Inc. After Its Yearly Results

It's been a mediocre week for BWX Technologies, Inc. (NYSE:BWXT) shareholders, with the stock dropping 13% to US$61.21 in the week since its latest yearly results. It was a credible result overall, with revenues of US$1.9b and statutory earnings per share of US$2.55 both in line with analyst estimates, showing that BWX Technologies is executing in line with expectations. Following the result, analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. We've gathered the most recent statutory forecasts to see whether analysts have changed their earnings models, following these results.

Check out our latest analysis for BWX Technologies

NYSE:BWXT Past and Future Earnings, February 27th 2020
NYSE:BWXT Past and Future Earnings, February 27th 2020

After the latest results, the five analysts covering BWX Technologies are now predicting revenues of US$2.04b in 2020. If met, this would reflect an okay 7.7% improvement in sales compared to the last 12 months. Statutory earnings per share are expected to rise 9.2% to US$2.80. In the lead-up to this report, analysts had been modelling revenues of US$2.05b and earnings per share (EPS) of US$2.74 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.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at US$67.33. 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. Currently, the most bullish analyst values BWX Technologies at US$77.00 per share, while the most bearish prices it at US$60.00. Still, with such a tight range of estimates, it suggests analysts have a pretty good idea of what they think the company is worth.

It can be useful to take a broader overview by seeing how analyst forecasts compare, both to the BWX Technologies's past performance and to peers in the same market. Analysts are definitely expecting BWX Technologies's growth to accelerate, with the forecast 7.7% growth ranking favourably alongside historical growth of 6.2% per annum over the past five years. Other similar companies in the industry (with analyst coverage) are also forecast to grow their revenue at 6.5% per year. BWX Technologies is expected to grow at about the same rate as its market, so it's not clear that we can draw any conclusions from its growth relative to competitors.

The Bottom Line

The most obvious conclusion from these results is that there's been no major change in the business' prospects in recent times, with analysts holding earnings per share steady, in line with previous estimates. Happily, there were no real changes to sales forecasts, with the business still expected to grow in line with the overall market. The consensus price target held steady at US$67.33, with the latest estimates not enough to have an impact on analysts' estimated valuations.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for BWX Technologies going out to 2023, and you can see them free on our platform here.

You can also see whether BWX Technologies is carrying too much debt, and whether its balance sheet is healthy, 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.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.

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