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The Manitowoc Company, Inc. (NYSE:MTW) Just Released Its Third-Quarter Earnings: Here's What Analysts Think

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The Manitowoc Company, Inc. (NYSE:MTW) defied analyst predictions to release its quarterly results, which were ahead of market expectations. The results overall were pretty good, with revenues of US$356m exceeding expectations and statutory losses coming in at justUS$0.01 per share, some 97% below what the analysts had forecast. Following the result, the 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

View our latest analysis for Manitowoc Company

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Taking into account the latest results, Manitowoc Company's ten analysts currently expect revenues in 2021 to be US$1.46b, approximately in line with the last 12 months. Manitowoc Company is also expected to turn profitable, with statutory earnings of US$0.15 per share. In the lead-up to this report, the analysts had been modelling revenues of US$1.46b and earnings per share (EPS) of US$0.15 in 2021. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

The analysts reconfirmed their price target of US$12.10, 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 Manitowoc Company at US$20.00 per share, while the most bearish prices it at US$10.00. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Manitowoc Company's past performance and to peers in the same industry. One thing that stands out from these estimates is that shrinking revenues are expected to moderate from the historical decline of 2.1% per annum over the past five years.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting sales are tracking in line with expectations - although our data does suggest that Manitowoc Company's revenues are expected to perform worse than the wider industry. The consensus price target held steady at US$12.10, with the latest estimates not enough to have an impact on their price targets.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for Manitowoc Company going out to 2022, and you can see them free on our platform here..

It might also be worth considering whether Manitowoc Company's debt load is appropriate, using our debt analysis tools on the Simply Wall St platform, here.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com.