SPX Technologies, Inc. Beat Analyst Estimates: See What The Consensus Is Forecasting For This Year
As you might know, SPX Technologies, Inc. (NYSE:SPXC) just kicked off its latest quarterly results with some very strong numbers. Statutory revenue and earnings both blasted past expectations, with revenue of US$400m beating expectations by 21% and earnings per share (EPS) reaching US$0.92, some 71% ahead of expectations. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
See our latest analysis for SPX Technologies
Following the latest results, SPX Technologies' four analysts are now forecasting revenues of US$1.63b in 2023. This would be a credible 5.0% improvement in sales compared to the last 12 months. Statutory earnings per share are predicted to surge 263% to US$3.66. Before this earnings report, the analysts had been forecasting revenues of US$1.53b and earnings per share (EPS) of US$3.20 in 2023. So it seems there's been a definite increase in optimism about SPX Technologies' future following the latest results, with a substantial gain in the earnings per share forecasts in particular.
Despite these upgrades,the analysts have not made any major changes to their price target of US$84.20, suggesting that the higher estimates are not likely to have a long term impact on what the stock is worth. 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. The most optimistic SPX Technologies analyst has a price target of US$91.00 per share, while the most pessimistic values it at US$80.00. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.
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 SPX Technologies is forecast to grow faster in the future than it has in the past, with revenues expected to display 6.7% annualised growth until the end of 2023. If achieved, this would be a much better result than the 2.4% annual decline over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue grow 4.8% per year. Not only are SPX Technologies' revenues expected to improve, it seems that the analysts are also expecting it to grow faster than 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 SPX Technologies following these results. Happily, they also upgraded their revenue estimates, and are forecasting revenues to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.
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 SPX Technologies going out to 2024, and you can see them free on our platform here.
Before you take the next step you should know about the 1 warning sign for SPX Technologies that we have uncovered.
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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.
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