Yahoo Finance Superior Industries International, Inc. Beat Analyst Profit Forecasts, And Analysts Have New Estimates
It's been a good week for Superior Industries International, Inc. (NYSE:SUP) shareholders, because the company has just released its latest second-quarter results, and the shares gained 3.5% to US$4.79. It was overall a positive result, with revenues beating expectations by 7.6% to hit US$432m. Superior Industries International also reported a statutory profit of US$0.07, which was a nice improvement from the loss that the analysts were predicting. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
See our latest analysis for Superior Industries International
Taking into account the latest results, the current consensus from Superior Industries International's dual analysts is for revenues of US$1.66b in 2022, which would reflect a solid 9.6% increase on its sales over the past 12 months. Before this earnings announcement, the analysts had been modelling revenues of US$1.64b and losses of US$0.13 per share in 2022. Although the revenue estimates have not really changed, we can see there's been a earnings per share expectations, suggesting that the analysts have become more bullish after the latest result.
The average price target rose 249% to US$12.50, with the analysts clearly having become more optimistic about Superior Industries International'sprospects following these results.
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. The analysts are definitely expecting Superior Industries International's growth to accelerate, with the forecast 20% annualised growth to the end of 2022 ranking favourably alongside historical growth of 3.4% 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 15% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Superior Industries International is expected to grow much faster than its industry.
The Bottom Line
The most important thing to take away is that there's been a clear step-change in belief around the business' prospects, with the analysts now expecting Superior Industries International to become profitable next year. Happily, there were no major changes to revenue forecasts, with the business still expected 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 Superior Industries International. Long-term earnings power is much more important than next year's profits. At least one analyst has provided forecasts out to 2023, which can be seen for free on our platform here.
Even so, be aware that Superior Industries International is showing 2 warning signs in our investment analysis , you should know about...
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.
Join A Paid User Research Session
You’ll receive a US$30 Amazon Gift card for 1 hour of your time while helping us build better investing tools for the individual investors like yourself. Sign up here
