Ingram Micro Holding Corporation (NYSE:INGM) Just Beat EPS By 9.5%: Here's What Analysts Are Forecasting For Next Year
A week ago, Ingram Micro Holding Corporation (NYSE:INGM) came out with a strong set of quarterly numbers that could potentially lead to a re-rate of the stock. The company beat expectations with revenues of US$15b arriving 9.9% ahead of forecasts. Statutory earnings per share (EPS) were US$0.57, 9.5% ahead of estimates. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
Taking into account the latest results, the consensus forecast from Ingram Micro Holding's 15 analysts is for revenues of US$63.0b in 2027. This reflects an okay 7.5% improvement in revenue compared to the last 12 months. Per-share earnings are expected to soar 47% to US$2.96. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$60.0b and earnings per share (EPS) of US$2.80 in 2027. It looks like there's been a modest increase in sentiment following the latest results, withthe analysts becoming a bit more optimistic in their predictions for both revenues and earnings.
See our latest analysis for Ingram Micro Holding
Despite these upgrades,the analysts have not made any major changes to their price target of US$32.85, suggesting that the higher estimates are not likely to have a long term impact on what the stock is worth. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. There are some variant perceptions on Ingram Micro Holding, with the most bullish analyst valuing it at US$37.00 and the most bearish at US$30.00 per share. This is a very narrow spread of estimates, implying either that Ingram Micro Holding is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.
Of course, another way to look at these forecasts is to place them into context against the industry itself. It's clear from the latest estimates that Ingram Micro Holding's rate of growth is expected to accelerate meaningfully, with the forecast 5.9% annualised revenue growth to the end of 2027 noticeably faster than its historical growth of 0.2% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 15% per year. It seems obvious that, while the future growth outlook is brighter than the recent past, Ingram Micro Holding is expected to grow slower than the wider industry.
The Bottom Line
The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Ingram Micro Holding's earnings potential next year. They also upgraded their revenue estimates for next year, even though it is expected to grow slower 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 in mind, we wouldn't be too quick to come to a conclusion on Ingram Micro Holding. Long-term earnings power is much more important than next year's profits. We have forecasts for Ingram Micro Holding going out to 2028, and you can see them free on our platform here.
Plus, you should also learn about the 1 warning sign we've spotted with Ingram Micro Holding .
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.