A week ago, Mettler-Toledo International Inc. (NYSE:MTD) came out with a strong set of quarterly numbers that could potentially lead to a re-rate of the stock. It was overall a positive result, with revenues beating expectations by 7.2% to hit US$807m. Mettler-Toledo International reported statutory earnings per share (EPS) US$6.68, which was a notable 17% above what the analysts had forecast. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
Taking into account the latest results, the most recent consensus for Mettler-Toledo International from nine analysts is for revenues of US$3.26b in 2021 which, if met, would be a notable 9.1% increase on its sales over the past 12 months. Statutory earnings per share are predicted to expand 11% to US$26.67. In the lead-up to this report, the analysts had been modelling revenues of US$3.16b and earnings per share (EPS) of US$25.45 in 2021. So there seems to have been a moderate uplift in sentiment following the latest results, given the upgrades to both revenue and earnings per share forecasts for next year.
With these upgrades, we're not surprised to see that the analysts have lifted their price target 12% to US$974per share. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on Mettler-Toledo International, with the most bullish analyst valuing it at US$1,170 and the most bearish at US$580 per share. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Mettler-Toledo International's past performance and to peers in the same industry. The analysts are definitely expecting Mettler-Toledo International's growth to accelerate, with the forecast 9.1% growth ranking favourably alongside historical growth of 5.3% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 9.0% next year. Factoring in the forecast acceleration in revenue, it's pretty clear that Mettler-Toledo International is expected to grow at about the same rate as the wider industry.
The Bottom Line
The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Mettler-Toledo International following these results. They also upgraded their revenue forecasts, although the latest estimates suggest that Mettler-Toledo International will grow in line with the overall 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. We have estimates - from multiple Mettler-Toledo International analysts - going out to 2022, and you can see them free on our platform here.
It is also worth noting that we have found 1 warning sign for Mettler-Toledo International that you need to take into consideration.
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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