US$56.00 - That's What Analysts Think Douglas Dynamics, Inc. Is Worth After These Results
Douglas Dynamics, Inc. (NYSE:PLOW) shares fell 3.2% to US$50.96 in the week since its latest full-year results. Douglas Dynamics reported in line with analyst predictions, delivering revenues of US$572m and statutory earnings per share of US$2.11, suggesting the business is executing well and in line with its plan. Earnings are an important time for investors, as they can track a company's performance, look at what top analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether analysts have changed their mind on Douglas Dynamics after the latest results.
Check out our latest analysis for Douglas Dynamics
Taking into account the latest results, Douglas Dynamics's three analysts currently expect revenues in 2020 to be US$582.6m, approximately in line with the last 12 months. Statutory earnings per share are expected to rise 9.2% to US$2.36. In the lead-up to this report, analysts had been modelling revenues of US$582.6m and earnings per share (EPS) of US$2.36 in 2020. So it's pretty clear that, although 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 16% to US$56.00 despite there being no meaningful change to earnings estimates. It could be that analysts are reflecting the predictability of Douglas Dynamics's earnings by assigning a price premium. The consensus price target just an average of individual analyst targets, so - considering that the price target changed, it would be handy to see how wide the range of underlying estimates is. There are some variant perceptions on Douglas Dynamics, with the most bullish analyst valuing it at US$61.00 and the most bearish at US$52.00 per share. Still, with such a tight range of estimates, it suggests analysts have a pretty good idea of what they think the company is worth.
It can be useful to take a broader overview by seeing how analyst forecasts compare, both to the Douglas Dynamics's past performance and to peers in the same market. It's pretty clear that analysts expect Douglas Dynamics's revenue growth will slow down substantially, with revenues next year expected to grow 1.9%, compared to a historical growth rate of 11% over the past five years. Juxtapose this against the other companies in the market with analyst coverage, which are forecast to grow their revenues (in aggregate) 2.0% next year. Factoring in the forecast slowdown in growth, it looks like analysts are expecting Douglas Dynamics to grow at about the same rate as the wider market.
The Bottom Line
The most important thing to take away is that there's been no major change in sentiment, with analysts reconfirming that earnings per share are expected to continue performing in line with their prior expectations. Happily, there were no real changes to sales forecasts, with the business still expected to grow in line with the overall market. There was also a nice increase in the price target, with analysts feeling that the intrinsic value of the business is improving.
Still, 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 Douglas Dynamics going out to 2021, and you can see them free on our platform here..
You can also view our analysis of Douglas Dynamics's balance sheet, and whether we think Douglas Dynamics is carrying too much debt, for free on our platform here.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.
