Orion Group Holdings, Inc. Just Beaten Revenue Expectations: Here’s What Analysts Think Will Happen Next
Last week you may have seen this Orion Group Holdings, Inc. (NYSE: ORN) released its first quarter result to the market. The early response was not positive, with stocks falling 6.1% to US $ 5.39 last week. This seems like a credible result overall – although revenue of US $ 153 million was what analysts expected, Orion Group Holdings surprised with a (statutory) profit of US $ 0.03 per share, an impressive 50% above what was expected. Following the result, analysts updated their earnings model, and it would be good to know if they think there has been a strong change in the outlook for the company, or if this is the status quo. . We put together the most recent statutory forecast to see if analysts have changed their earnings models as a result of these results. NYSE: ORN Earnings and Revenue Growth May 1, 2021
Based on the latest results, the four analysts at Orion Group Holdings currently expect revenue of US $ 697.2 million in 2021, roughly in line with the past 12 months. Statutory earnings per share are expected to fall 44% to $ 0.34 over the same period. Yet before the latest results, analysts had forecast revenue of US $ 697.2 million and earnings per share (EPS) of US $ 0.34 in 2021. Consensus analysts do not appear to have seen anything in those results that would have changed their perspective on the company, given that there was no major change in their estimates.
So it won’t be surprising to learn that the consensus price target is largely unchanged at US $ 7.92. There is another way to think about price targets, however, and that is the range of price targets that analysts offer, as a wide range of estimates could suggest a diverse view of possible outcomes for the business. There are different perceptions on Orion Group Holdings, with the most bullish analyst valuing it at US $ 8.25 and the most bearish at US $ 7.50 per share. This is a very narrow range of estimates, implying either that Orion Group Holdings is an easy company to value, or – more likely – analysts are relying heavily on some key assumptions.
These estimates are interesting, but it may be useful to paint a broader picture to see how the forecast compares, both to past performance of Orion Group Holdings and to its peers in the same industry. We point out that Orion Group Holdings’ revenue growth is expected to slow, with the expected annualized growth rate of 0.1% through the end of 2021 being well below the historic growth of 5.8% per year over the years. last five years. By comparison, other companies in this industry covered by analysts are expected to grow their revenue by 7.0% per year. So it’s pretty clear that while revenue growth is expected to slow, the industry as a whole is also expected to grow faster than Orion Group Holdings.
The bottom line
The most obvious conclusion is that there hasn’t been a major shift in the outlook for the company lately, with analysts keeping their earnings forecasts steady, in line with previous estimates. On the positive side, there have been no major changes in income estimates; although forecasts imply that revenues will perform less well than those of the industry as a whole. The consensus price target remained stable at US $ 7.92 as the latest estimates were not sufficient to impact their price targets.
With that in mind, we wouldn’t be too quick to come to a conclusion on Orion Group Holdings. Long-term profit power is far more important than next year’s profits. We have estimates – from several analysts at Orion Group Holdings – for 2025, and you can view them for free on our platform here.
In addition, you should also know more about the 1 warning sign we spotted with Orion Group Holdings.
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