Yahoo Finance Results: Argan, Inc. Exceeded Expectations And The Consensus Has Updated Its Estimates
Shareholders of Argan, Inc. (NYSE:AGX) will be pleased this week, given that the stock price is up 17% to US$59.46 following its latest yearly results. The result was positive overall - although revenues of US$573m were in line with what the analysts predicted, Argan surprised by delivering a statutory profit of US$2.39 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
Check out our latest analysis for Argan
Taking into account the latest results, the consensus forecast from Argan's twin analysts is for revenues of US$724.4m in 2025. This reflects a substantial 26% improvement in revenue compared to the last 12 months. Per-share earnings are expected to jump 53% to US$3.73. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$640.4m and earnings per share (EPS) of US$3.32 in 2025. So we can see there's been a pretty clear increase in sentiment following the latest results, with both revenues and earnings per share receiving a decent lift in the latest estimates.
It will come as no surprise to learn that the analysts have increased their price target for Argan 19% to US$65.00on the back of these upgrades.
Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. The analysts are definitely expecting Argan's growth to accelerate, with the forecast 26% annualised growth to the end of 2025 ranking favourably alongside historical growth of 11% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 7.6% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Argan is expected to grow much faster than its industry.
The Bottom Line
The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Argan's earnings potential next year. Happily, they also upgraded their revenue estimates, and are forecasting them to grow faster than 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.
With that in mind, we wouldn't be too quick to come to a conclusion on Argan. Long-term earnings power is much more important than next year's profits. At least one analyst has provided forecasts out to 2026, which can be seen for free on our platform here.
Plus, you should also learn about the 1 warning sign we've spotted with Argan .
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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.
