Yahoo Finance EMCOR Group, Inc. Yearly Results: Here's What Analysts Are Forecasting For Next Year
There's been a notable change in appetite for EMCOR Group, Inc. (NYSE:EME) shares in the week since its yearly report, with the stock down 14% to US$76.92. EMCOR Group reported in line with analyst predictions, delivering revenues of US$9.2b and statutory earnings per share of US$5.75, suggesting the business is executing well and in line with its plan. This is an important time for investors, as they can track a company's performance in its report, look at what top analysts 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 analysts' latest (statutory) post-earnings forecasts for next year.
See our latest analysis for EMCOR Group
Taking into account the latest results, the most recent consensus for EMCOR Group from five analysts is for revenues of US$9.66b in 2020, which is an okay 5.3% increase on its sales over the past 12 months. Statutory earnings per share are expected to increase 2.9% to US$5.95. In the lead-up to this report, analysts had been modelling revenues of US$9.66b and earnings per share (EPS) of US$5.99 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.
There were no changes to revenue or earnings estimates or the price target of US$94.00, suggesting that the company has met expectations in its recent result. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic EMCOR Group analyst has a price target of US$103 per share, while the most pessimistic values it at US$87.00. Still, with such a tight range of estimates, it suggests analysts have a pretty good idea of what they think the company is worth.
In addition, we can look to EMCOR Group's past performance and see whether business is expected to improve, and if the company is expected to perform better than wider market. It's pretty clear that analysts expect EMCOR Group's revenue growth will slow down substantially, with revenues next year expected to grow 5.3%, compared to a historical growth rate of 6.7% over the past five years. By way of comparison, other companies in this market with analyst coverage, are forecast to grow their revenue at 3.4% next year. So it's pretty clear that, while EMCOR Group's revenue growth is expected to slow, it's still expected to grow faster than the market itself.
The Bottom Line
The most obvious conclusion from these results is that there's been no major change in the business' prospects in recent times, with analysts holding earnings per share steady, in line with previous estimates. Happily, there were no major changes to revenue forecasts, with analysts still expecting the business to grow faster than the wider market. The consensus price target held steady at US$94.00, with the latest estimates not enough to have an impact on analysts' estimated valuations.
Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. At Simply Wall St, we have a full range of analyst estimates for EMCOR Group going out to 2022, and you can see them free on our platform here..
Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months 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.
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