UFP Technologies, Inc. (NASDAQ:UFPT) Just Reported And Analysts Have Been Lifting Their Price Targets
Investors in UFP Technologies, Inc. (NASDAQ:UFPT) had a good week, as its shares rose 9.0% to close at US$211 following the release of its yearly results. The result was positive overall - although revenues of US$400m were in line with what the analysts predicted, UFP Technologies surprised by delivering a statutory profit of US$5.83 per share, modestly greater than expected. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
See our latest analysis for UFP Technologies
Following the latest results, UFP Technologies' three analysts are now forecasting revenues of US$432.1m in 2024. This would be a credible 8.0% improvement in revenue compared to the last 12 months. Statutory per-share earnings are expected to be US$5.77, roughly flat on the last 12 months. In the lead-up to this report, the analysts had been modelling revenues of US$440.8m and earnings per share (EPS) of US$6.21 in 2024. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a small dip in their earnings per share forecasts.
Althoughthe analysts have revised their earnings forecasts for next year, they've also lifted the consensus price target 23% to US$231, suggesting the revised estimates are not indicative of a weaker long-term future for the business.
Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We would highlight that UFP Technologies' revenue growth is expected to slow, with the forecast 8.0% annualised growth rate until the end of 2024 being well below the historical 18% 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) 7.8% annually. Factoring in the forecast slowdown in growth, it looks like UFP Technologies is forecast to grow at about the same rate as the wider industry.
The Bottom Line
The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for UFP Technologies. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.
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. At Simply Wall St, we have a full range of analyst estimates for UFP Technologies going out to 2026, 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 UFP 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.
