Silgan Holdings Inc. (NYSE:SLGN) Released Earnings Last Week And Analysts Lifted Their Price Target To US$51.91
Investors in Silgan Holdings Inc. (NYSE:SLGN) had a good week, as its shares rose 3.3% to close at US$45.25 following the release of its full-year results. Silgan Holdings reported US$6.0b in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of US$2.98 beat expectations, being 3.2% higher than what the analysts expected. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
View our latest analysis for Silgan Holdings
Taking into account the latest results, Silgan Holdings' eleven analysts currently expect revenues in 2024 to be US$6.09b, approximately in line with the last 12 months. Per-share earnings are expected to rise 6.0% to US$3.25. Before this earnings report, the analysts had been forecasting revenues of US$6.11b and earnings per share (EPS) of US$3.29 in 2024. 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 consensus price target rose 6.1% to US$51.91despite there being no meaningful change to earnings estimates. It could be that the analystsare reflecting the predictability of Silgan Holdings' earnings by assigning a price premium. 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 Silgan Holdings, with the most bullish analyst valuing it at US$62.00 and the most bearish at US$42.00 per share. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.
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 Silgan Holdings' revenue growth is expected to slow, with the forecast 1.7% annualised growth rate until the end of 2024 being well below the historical 8.7% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 2.9% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Silgan Holdings.
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 that it's tracking in line with expectations. Although our data does suggest that Silgan Holdings' revenue is expected to perform worse than the wider 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.
With that in mind, we wouldn't be too quick to come to a conclusion on Silgan Holdings. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Silgan Holdings 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 2 warning signs for Silgan Holdings (1 doesn't sit too well with us!) 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.
