It's shaping up to be a tough period for American Vanguard Corporation (NYSE:AVD), which a week ago released some disappointing third-quarter results that could have a notable impact on how the market views the stock. Unfortunately, American Vanguard delivered a serious earnings miss. Revenues of US$118m were 15% below expectations, and statutory losses ballooned 868% to US$0.92 per share. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

See our latest analysis for American Vanguard

Taking into account the latest results, the current consensus from American Vanguard's two analysts is for revenues of US$591.3m in 2025. This would reflect an okay 6.8% increase on its revenue over the past 12 months. American Vanguard is also expected to turn profitable, with statutory earnings of US$0.42 per share. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$598.8m and earnings per share (EPS) of US$0.40 in 2025. So the consensus seems to have become somewhat more optimistic on American Vanguard's earnings potential following these results.

The consensus price target fell 17% to US$12.50, suggesting the increase in earnings forecasts was not enough to offset other the analysts concerns.

Of course, another way to look at these forecasts is to place them into context against the industry itself. The period to the end of 2025 brings more of the same, according to the analysts, with revenue forecast to display 5.4% growth on an annualised basis. That is in line with its 5.7% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 4.5% annually. It's clear that while American Vanguard's revenue growth is expected to continue on its current trajectory, it's only expected to grow in line with the industry itself.

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 American Vanguard following these results. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of American Vanguard's future valuation.

With that in mind, we wouldn't be too quick to come to a conclusion on American Vanguard. Long-term earnings power is much more important than next year's profits. At least one analyst has provided forecasts out to 2025, which can be seen for free on our platform here.

Plus, you should also learn about the 3 warning signs we've spotted with American Vanguard .

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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.