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The Mueller Industries, Inc. (NYSE:MLI) Analyst Just Cut Their Revenue Forecast By 24%

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Simply Wall St
·2 min read
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The analyst covering Mueller Industries, Inc. (NYSE:MLI) delivered a dose of negativity to shareholders today, by making a substantial revision to their statutory forecasts for this year. This report focused on revenue estimates, and it looks as though the consensus view of the business has become substantially more conservative.

Following the latest downgrade, the sole analyst covering Mueller Industries provided consensus estimates of US$1.8b revenue in 2020, which would reflect a substantial 27% decline on its sales over the past 12 months. Prior to the latest estimates, the analyst was forecasting revenues of US$2.3b in 2020. The consensus view seems to have become more pessimistic on Mueller Industries, noting the pretty serious reduction to revenue estimates in this update.

Check out our latest analysis for Mueller Industries

NYSE:MLI Past and Future Earnings April 27th 2020
NYSE:MLI Past and Future Earnings April 27th 2020

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. These estimates imply that sales are expected to slow, with a forecast revenue decline of 27%, a significant reduction from annual growth of 3.5% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 1.7% next year. It's pretty clear that Mueller Industries' revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The clear low-light was that the analyst slashing their revenue forecasts for Mueller Industries this year. They're also anticipating slower revenue growth than the wider market. Often, one downgrade can set off a daisy-chain of cuts, especially if an industry is in decline. So we wouldn't be surprised if the market became a lot more cautious on Mueller Industries after today.

A high debt burden combined with a downgrade of this magnitude always gives us some reason for concern, especially if these forecasts are just the first sign of a business downturn. See why we're concerned about Mueller Industries' balance sheet by visiting our risks dashboard for free on our platform here.

We also provide an overview of the Mueller Industries 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 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.