Safe Bulkers, Inc. (NYSE:SB) Just Beat EPS By 6.2%: Here's What Analysts Are Forecasting For This Year
Safe Bulkers, Inc. (NYSE:SB) just released its full-year report and things are looking bullish. Results were good overall, with revenues beating analyst predictions by 7.1% to hit US$284m. Statutory earnings per share (EPS) came in at US$0.61, some 6.2% above whatthe analysts had expected. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
View our latest analysis for Safe Bulkers
Taking into account the latest results, the consensus forecast from Safe Bulkers' four analysts is for revenues of US$300.6m in 2024. This reflects an okay 5.7% improvement in revenue compared to the last 12 months. Per-share earnings are expected to accumulate 5.7% to US$0.66. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$302.8m and earnings per share (EPS) of US$0.65 in 2024. 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.
There were no changes to revenue or earnings estimates or the price target of US$4.29, suggesting that the company has met expectations in its recent result. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Safe Bulkers analyst has a price target of US$5.70 per share, while the most pessimistic values it at US$2.85. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.
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. We would highlight that Safe Bulkers' revenue growth is expected to slow, with the forecast 5.7% annualised growth rate until the end of 2024 being well below the historical 14% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 0.3% per year. Even after the forecast slowdown in growth, it seems obvious that Safe Bulkers is also expected to grow faster than the wider industry.
The Bottom Line
The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. The consensus price target held steady at US$4.29, 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 Safe Bulkers going out to 2026, and you can see them free on our platform here.
We don't want to rain on the parade too much, but we did also find 3 warning signs for Safe Bulkers that you need to be mindful of.
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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.
