Rayonier Advanced Materials Inc. (NYSE:RYAM) Annual Results: Here's What Analysts Are Forecasting For This Year
It's been a sad week for Rayonier Advanced Materials Inc. (NYSE:RYAM), who've watched their investment drop 13% to US$3.78 in the week since the company reported its annual result. Revenues were in line with expectations, at US$1.6b, while statutory losses ballooned to US$1.57 per share. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
See our latest analysis for Rayonier Advanced Materials
Taking into account the latest results, the consensus forecast from Rayonier Advanced Materials' three analysts is for revenues of US$1.68b in 2024. This reflects a satisfactory 2.3% improvement in revenue compared to the last 12 months. Losses are predicted to fall substantially, shrinking 78% to US$0.34. Yet prior to the latest earnings, the analysts had been forecasting revenues of US$1.65b and losses of US$0.24 per share in 2024. While this year's revenue estimates held steady, there was also a regrettable increase in loss per share expectations, suggesting the consensus has a bit of a mixed view on the stock.
The consensus price target held steady at US$5.50, seemingly implying that the higher forecast losses are not expected to have a long term impact on the company's valuation. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on Rayonier Advanced Materials, with the most bullish analyst valuing it at US$6.00 and the most bearish at US$5.00 per share. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.
Of course, another way to look at these forecasts is to place them into context against the industry itself. One thing stands out from these estimates, which is that Rayonier Advanced Materials is forecast to grow faster in the future than it has in the past, with revenues expected to display 2.3% annualised growth until the end of 2024. If achieved, this would be a much better result than the 1.0% annual decline over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue grow 4.4% per year. So although Rayonier Advanced Materials' revenue growth is expected to improve, it is still expected to grow slower than the industry.
The Bottom Line
The most important thing to note is the forecast of increased losses next year, suggesting all may not be well at Rayonier Advanced Materials. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Rayonier Advanced Materials' revenue is expected to perform worse than the wider industry. The consensus price target held steady at US$5.50, 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. We have forecasts for Rayonier Advanced Materials going out to 2025, and you can see them free on our platform here.
You still need to take note of risks, for example - Rayonier Advanced Materials has 1 warning sign we think you should be aware of.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.
