Yahoo Finance MSA Safety Incorporated Just Recorded A 8.1% EPS Beat: Here's What Analysts Are Forecasting Next
Last week, you might have seen that MSA Safety Incorporated (NYSE:MSA) released its first-quarter result to the market. The early response was not positive, with shares down 4.1% to US$183 in the past week. Results look mixed - while revenue fell marginally short of analyst estimates at US$413m, statutory earnings beat expectations 8.1%, with MSA Safety reporting profits of US$1.47 per share. 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. 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 MSA Safety
Following the latest results, MSA Safety's dual analysts are now forecasting revenues of US$1.87b in 2024. This would be a modest 3.7% improvement in revenue compared to the last 12 months. Per-share earnings are expected to increase 9.2% to US$7.41. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$1.88b and earnings per share (EPS) of US$7.24 in 2024. So the consensus seems to have become somewhat more optimistic on MSA Safety's earnings potential following these results.
The consensus price target was unchanged at US$198, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders.
One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We can infer from the latest estimates that forecasts expect a continuation of MSA Safety'shistorical trends, as the 5.0% annualised revenue growth to the end of 2024 is roughly in line with the 5.6% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 6.7% per year. So it's pretty clear that MSA Safety is expected to grow slower than similar companies in the same industry.
The Bottom Line
The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around MSA Safety's earnings potential next year. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that MSA Safety's revenue is expected to perform worse than the wider industry. The consensus price target held steady at US$198, with the latest estimates not enough to have an impact on their price targets.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At least one analyst has provided forecasts out to 2025, which can be seen for free on our platform here.
However, before you get too enthused, we've discovered 2 warning signs for MSA Safety that you should be aware of.
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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.
