Shareholders of Standex International Corporation (NYSE:SXI) will be pleased this week, given that the stock price is up 13% to US$158 following its latest quarterly results. Standex International reported US$208m in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of US$1.81 beat expectations, being 5.4% higher than what the analysts expected. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
Our free stock report includes 3 warning signs investors should be aware of before investing in Standex International. Read for free now.
Taking into account the latest results, the most recent consensus for Standex International from five analysts is for revenues of US$883.5m in 2026. If met, it would imply a decent 18% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to soar 64% to US$8.35. Before this earnings report, the analysts had been forecasting revenues of US$893.3m and earnings per share (EPS) of US$8.96 in 2026. The analysts seem to have become a little more negative on the business after the latest results, given the minor downgrade to their earnings per share numbers for next year.
Check out our latest analysis for Standex International
It might be a surprise to learn that the consensus price target was broadly unchanged at US$197, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. 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. There are some variant perceptions on Standex International, with the most bullish analyst valuing it at US$220 and the most bearish at US$175 per share. 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.
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 Standex International's rate of growth is expected to accelerate meaningfully, with the forecast 14% annualised revenue growth to the end of 2026 noticeably faster than its historical growth of 3.9% 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 3.9% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Standex International to grow faster than the wider industry.
The Bottom Line
The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Standex International. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster 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.
Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Standex International analysts - going out to 2027, and you can see them free on our platform here.
You should always think about risks though. Case in point, we've spotted 3 warning signs for Standex International you should be aware of, and 1 of them is significant.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.