In This Article:
Utz Brands, Inc. (NYSE:UTZ) came out with its second-quarter results last week, and we wanted to see how the business is performing and what industry forecasters think of the company following this report. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
See our latest analysis for Utz Brands
Following last week's earnings report, Utz Brands' seven analysts are forecasting 2023 revenues to be US$1.46b, approximately in line with the last 12 months. Per-share earnings are expected to accumulate 8.5% to US$0.01. Before this earnings report, the analysts had been forecasting revenues of US$1.46b and earnings per share (EPS) of US$0.0033 in 2023. Although the revenue estimates have not really changed, we can see there's been a considerable lift to earnings per share expectations, suggesting that the analysts have become more bullish after the latest result.
There's been no major changes to the consensus price target of US$19.57, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. 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. Currently, the most bullish analyst values Utz Brands at US$22.00 per share, while the most bearish prices it at US$18.00. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Utz Brands' past performance and to peers in the same industry. We would highlight that Utz Brands' revenue growth is expected to slow, with the forecast 4.0% annualised growth rate until the end of 2023 being well below the historical 17% 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) 2.8% per year. So it's pretty clear that, while Utz Brands' revenue growth is expected to slow, it's still expected to grow faster than the industry itself.