ATMU) After Its Yearly Report
Investors in Atmus Filtration Technologies Inc. (NYSE:ATMU) had a good week, as its shares rose 4.7% to close at US$22.95 following the release of its full-year results. The result was positive overall – although revenues of US$1.6b were in line with what the analysts predicted, Atmus Filtration Technologies surprised by delivering a statutory profit of US$2.05 per share, modestly greater than expected. 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. With this in mind, we’ve gathered the latest statutory forecasts to see what the analysts are expecting for next year.
View our latest analysis for Atmus Filtration Technologies
Taking into account the latest results, Atmus Filtration Technologies’ six analysts currently expect revenues in 2024 to be US$1.64b, approximately in line with the last 12 months. Statutory per-share earnings are expected to be US$2.04, roughly flat on the last 12 months. Before this earnings report, the analysts had been forecasting revenues of US$1.60b and earnings per share (EPS) of US$1.88 in 2024. So there seems to have been a moderate uplift in sentiment following the latest results, given the upgrades to both revenue and earnings per share forecasts for next year.
Despite these upgrades,the analysts have not made any major changes to their price target of US$28.17, suggesting that the higher estimates are not likely to have a long term impact on what the stock is worth. There’s another way to think about price targets though, and that’s to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. The most optimistic Atmus Filtration Technologies analyst has a price target of US$30.00 per share, while the most pessimistic values it at US$26.00. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company 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. We would highlight that Atmus Filtration Technologies’ revenue growth is expected to slow, with the forecast 0.7% annualised growth rate until the end of 2024 being well below the historical 8.7% p.a. growth over the last three years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 10% annually. So it’s pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Atmus Filtration Technologies.
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 Atmus Filtration Technologies following these results. Fortunately, they also upgraded their revenue estimates, although our data indicates it is expected to perform worse than the wider 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.
With that said, the long-term trajectory of the company’s earnings is a lot more important than next year. We have forecasts for Atmus Filtration Technologies going out to 2025, and you can see them free on our platform here.
Don’t forget that there may still be risks. For instance, we’ve identified 1 warning sign for Atmus Filtration Technologies 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.
