Yahoo Finance ManTech International Corporation Beat Analyst Estimates: See What The Consensus Is Forecasting For Next Year
It's been a good week for ManTech International Corporation (NASDAQ:MANT) shareholders, because the company has just released its latest yearly results, and the shares gained 4.8% to US$86.14. Revenues were US$2.2b, approximately in line with expectations, although statutory earnings per share (EPS) performed substantially better. EPS of US$2.83 were also better than expected, beating analyst predictions by 17%. Following the result, 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether analysts have changed their mind on ManTech International after the latest results.
View our latest analysis for ManTech International
Taking into account the latest results, the latest consensus from ManTech International's seven analysts is for revenues of US$2.42b in 2020, which would reflect a solid 9.0% improvement in sales compared to the last 12 months. Statutory per-share earnings are expected to be US$2.84, roughly flat on the last 12 months. Yet prior to the latest earnings, analysts had been forecasting revenues of US$2.38b and earnings per share (EPS) of US$2.61 in 2020. Analysts seem to have become more bullish on the business, judging by their new earnings per share estimates.
The consensus price target rose 6.1% to US$79.29, suggesting that higher earnings estimates flow through to the stock's valuation as well. The consensus price target just an average of individual analyst targets, so - considering that the price target changed, it would be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values ManTech International at US$88.00 per share, while the most bearish prices it at US$69.00. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or that analysts have a clear view on its prospects.
Further, we can compare these estimates to past performance, and see how ManTech International forecasts compare to the wider market's forecast performance. Analysts are definitely expecting ManTech International's growth to accelerate, with the forecast 9.0% growth ranking favourably alongside historical growth of 6.1% per annum over the past five years. Compare this with other companies in the same market, which are forecast to see a revenue decline of 11% next year. So it's clear that despite the acceleration in growth, ManTech International is expected to grow meaningfully slower than the market average.
The Bottom Line
The most important thing to take away from this is that analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards ManTech International following these results. On the plus side, there were no major changes to revenue estimates; although analyst forecasts imply revenues will perform worse than the wider market. There was also a nice increase in the price target, with analysts feeling that the intrinsic value of the business is improving.
Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. We have forecasts for ManTech International going out to 2022, and you can see them free on our platform here.
You can also see whether ManTech International is carrying too much debt, and whether its balance sheet is healthy, for free on our platform here.
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