USA Truck, Inc. Beat Analyst Estimates: See What The Consensus Is Forecasting For Next Year

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USA Truck, Inc. (NASDAQ:USAK) just released its latest third-quarter results and things are looking bullish. The company beat both earnings and revenue forecasts, with revenue of US£142m, some 5.1% above estimates, and statutory earnings per share (EPS) coming in at US£0.26, 271% ahead of expectations. 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 collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

Check out our latest analysis for USA Truck

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Taking into account the latest results, the consensus forecast from USA Truck's three analysts is for revenues of US£571.9m in 2021, which would reflect a meaningful 11% improvement in sales compared to the last 12 months. USA Truck is also expected to turn profitable, with statutory earnings of US£1.04 per share. Before this earnings report, the analysts had been forecasting revenues of US£559.5m and earnings per share (EPS) of US£0.90 in 2021.

There's been a pretty noticeable increase in sentiment, with the analysts upgrading revenues and making a nice increase in earnings per share in particular.

With these upgrades, we're not surprised to see that the analysts have lifted their price target 13% to US£15.25per share. 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 USA Truck, with the most bullish analyst valuing it at US£19.00 and the most bearish at US£11.00 per share.

As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

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. The analysts are definitely expecting USA Truck's growth to accelerate, with the forecast 11% growth ranking favourably alongside historical growth of 2.8% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 8.8% next year.

USA Truck is expected to grow at about the same rate as its industry, so it's not clear that we can draw any conclusions from its growth relative to competitors.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around USA Truck's earnings potential next year.

They also upgraded their revenue forecasts, although the latest estimates suggest that USA Truck will grow in line with the overall industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

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.

At Simply Wall St, we have a full range of analyst estimates for USA Truck going out to 2021, and you can see them free on our platform here..

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You should always think about risks though. Case in point, we've spotted 3 warning signs for USA Truck you should be aware of, and 1 of them is a bit unpleasant.

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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