Analysts Are Updating Their The Andersons, Inc. (NASDAQ:ANDE) Estimates After Its Third-Quarter Results

The Andersons, Inc. (NASDAQ:ANDE) just released its latest quarterly results and things are looking bullish. Revenues and losses per share were both better than expected, with revenues of US$1.9b leading estimates by 2.5%. Statutory losses were smaller than the analystsexpected, coming in at US$0.03 per share. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

See our latest analysis for Andersons

Following the latest results, Andersons' four analysts are now forecasting revenues of US$7.76b in 2021. This would be a credible 2.7% improvement in sales compared to the last 12 months. Earnings are expected to improve, with Andersons forecast to report a statutory profit of US$1.76 per share. Before this earnings report, the analysts had been forecasting revenues of US$7.81b and earnings per share (EPS) of US$1.76 in 2021. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

The analysts reconfirmed their price target of US$24.00, showing that the business is executing well and in line with expectations. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values Andersons at US$26.00 per share, while the most bearish prices it at US$22.00. 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 Andersons' revenue growth will slow down substantially, with revenues next year expected to grow 2.7%, compared to a historical growth rate of 16% over the past five years. Compare this to the 49 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 3.3% per year. Factoring in the forecast slowdown in growth, it looks like Andersons is forecast to grow at about the same rate as the wider industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Happily, there were no real changes to sales forecasts, with the business still expected to grow in line with the overall 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.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates - from multiple Andersons analysts - going out to 2021, and you can see them free on our platform here.

Even so, be aware that Andersons is showing 3 warning signs in our investment analysis , and 1 of those makes us a bit uncomfortable...

This article by Simply Wall St is general in nature. 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.

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