Magellan Aerospace Corporation Beat Analyst Estimates: See What The Consensus Is Forecasting For Next Year
As you might know, Magellan Aerospace Corporation (TSE:MAL) just kicked off its latest third-quarter results with some very strong numbers. Magellan Aerospace delivered a significant beat to revenue and earnings per share (EPS) expectations, hitting CA$301m-13% above indicated-andCA$0.35-21% above forecasts- respectively The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
Taking into account the latest results, the most recent consensus for Magellan Aerospace from three analysts is for revenues of CA$1.27b in 2027. If met, it would imply a decent 8.3% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to leap 66% to CA$1.95. In the lead-up to this report, the analysts had been modelling revenues of CA$1.26b and earnings per share (EPS) of CA$1.72 in 2027. Although the revenue estimates have not really changed, we can see there's been a solid gain to earnings per share expectations, suggesting that the analysts have become more bullish after the latest result.
See our latest analysis for Magellan Aerospace
There's been no major changes to the consensus price target of CA$46.00, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. 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. Currently, the most bullish analyst values Magellan Aerospace at CA$48.00 per share, while the most bearish prices it at CA$44.00. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.
Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. It's pretty clear that there is an expectation that Magellan Aerospace's revenue growth will slow down substantially, with revenues to the end of 2027 expected to display 6.6% growth on an annualised basis. This is compared to a historical growth rate of 10% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 11% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Magellan Aerospace.
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 Magellan Aerospace following these results. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will 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 in mind, we wouldn't be too quick to come to a conclusion on Magellan Aerospace. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Magellan Aerospace going out to 2028, and you can see them free on our platform here..
You can also see whether Magellan Aerospace is carrying too much debt, and whether its balance sheet is healthy, for free on our platform here.
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