Yahoo Finance Mueller Water Products, Inc. Just Beat EPS By 107%: Here's What Analysts Think Will Happen Next
A week ago, Mueller Water Products, Inc. (NYSE:MWA) came out with a strong set of second-quarter numbers that could potentially lead to a re-rate of the stock. It was a solid earnings report, with revenues and statutory earnings per share (EPS) both coming in strong. Revenues were 18% higher than the analysts had forecast, at US$353m, while EPS were US$0.28 beating analyst models by 107%. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
View our latest analysis for Mueller Water Products
Taking into account the latest results, Mueller Water Products' six analysts currently expect revenues in 2024 to be US$1.26b, approximately in line with the last 12 months. Per-share earnings are expected to soar 26% to US$0.81. Before this earnings report, the analysts had been forecasting revenues of US$1.22b and earnings per share (EPS) of US$0.63 in 2024. So it seems there's been a definite increase in optimism about Mueller Water Products' future following the latest results, with a sizeable expansion in the earnings per share forecasts in particular.
With these upgrades, we're not surprised to see that the analysts have lifted their price target 15% to US$21.17per share. 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 Mueller Water Products analyst has a price target of US$24.00 per share, while the most pessimistic values it at US$19.00. This is a very narrow spread of estimates, implying either that Mueller Water Products is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.
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. We would highlight that Mueller Water Products' revenue growth is expected to slow, with the forecast 3.3% annualised growth rate until the end of 2024 being well below the historical 7.4% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 3.7% annually. Factoring in the forecast slowdown in growth, it looks like Mueller Water Products is forecast to grow at about the same rate as 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 Mueller Water Products following these results. They also upgraded their revenue forecasts, although the latest estimates suggest that Mueller Water Products will grow in line with the overall industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Mueller Water Products going out to 2026, and you can see them free on our platform here..
Before you take the next step you should know about the 1 warning sign for Mueller Water Products that we have uncovered.
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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.
