Yahoo Finance Huntsman Corporation Just Recorded A 564% EPS Beat: Here's What Analysts Are Forecasting Next
Shareholders might have noticed that Huntsman Corporation (NYSE:HUN) filed its quarterly result this time last week. The early response was not positive, with shares down 2.5% to US$26.06 in the past week. It looks to have been a decent result overall - while revenue fell marginally short of analyst estimates at US$1.6b, statutory earnings beat expectations by a notable 564%, coming in at US$0.83 per share. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
View our latest analysis for Huntsman
Taking into account the latest results, the 16 analysts covering Huntsman provided consensus estimates of US$7.10b revenue in 2023, which would reflect a noticeable 4.5% decline on its sales over the past 12 months. Per-share earnings are expected to expand 20% to US$1.81. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$7.40b and earnings per share (EPS) of US$1.61 in 2023. Although the analysts have lowered their sales forecasts, they've also made a decent improvement in their earnings per share estimates, which implies there's been something of an uptick in sentiment following the latest results.
There's been no real change to the average price target of US$29.69, with the lower revenue and higher earnings forecasts not expected to meaningfully impact the company's valuation over a longer timeframe. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Huntsman analyst has a price target of US$38.00 per share, while the most pessimistic values it at US$24.00. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.
Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. These estimates imply that sales are expected to slow, with a forecast annualised revenue decline of 5.9% by the end of 2023. This indicates a significant reduction from annual growth of 0.06% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 4.7% annually for the foreseeable future. It's pretty clear that Huntsman's revenues are expected to perform substantially worse 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 Huntsman following these results. On the negative side, they also downgraded their revenue estimates, and forecasts imply revenues will perform worse than the wider industry. With that said, earnings are more important to the long-term value of the business. 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.
With that in mind, we wouldn't be too quick to come to a conclusion on Huntsman. 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 Huntsman going out to 2025, and you can see them free on our platform here..
Don't forget that there may still be risks. For instance, we've identified 1 warning sign for Huntsman that you should be aware of.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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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