The Andersons, Inc. Just Beat EPS By 23%: Here's What Analysts Think Will Happen Next
It's been a sad week for The Andersons, Inc. (NASDAQ:ANDE), who've watched their investment drop 14% to US$55.12 in the week since the company reported its third-quarter result. Revenues of US$2.8b fell slightly short of expectations, but earnings were a definite bright spot, with statutory per-share profits of US$1.36 an impressive 23% ahead of estimates. 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.
Following the latest results, Andersons' three analysts are now forecasting revenues of US$11.8b in 2027. This would be a satisfactory 6.5% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to accumulate 2.8% to US$6.28. Before this earnings report, the analysts had been forecasting revenues of US$11.9b and earnings per share (EPS) of US$6.40 in 2027. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.
See our latest analysis for Andersons
It will come as no surprise then, to learn that the consensus price target is largely unchanged at US$86.67. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on Andersons, with the most bullish analyst valuing it at US$90.00 and the most bearish at US$80.00 per share. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.
Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. For example, we noticed that Andersons' rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 5.2% growth to the end of 2027 on an annualised basis. That is well above its historical decline of 7.1% a year over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 5.1% annually. So it looks like Andersons is expected to grow at about the same rate as the wider industry.
The Bottom Line
The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. 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.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates - from multiple Andersons analysts - going out to 2027, and you can see them free on our platform here.
Plus, you should also learn about the 3 warning signs we've spotted with Andersons (including 2 which are potentially serious) .
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