Earnings Miss: Albany International Corp. Missed EPS By 5.9% And Analysts Are Revising Their Forecasts

Simply Wall St.
03-02

Albany International Corp. (NYSE:AIN) shareholders are probably feeling a little disappointed, since its shares fell 4.2% to US$76.57 in the week after its latest annual results. Revenues of US$1.2b were in line with forecasts, although statutory earnings per share (EPS) came in below expectations at US$2.80, missing estimates by 5.9%. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

See our latest analysis for Albany International

NYSE:AIN Earnings and Revenue Growth March 2nd 2025

Taking into account the latest results, Albany International's three analysts currently expect revenues in 2025 to be US$1.25b, approximately in line with the last 12 months. Statutory earnings per share are predicted to shoot up 25% to US$3.53. In the lead-up to this report, the analysts had been modelling revenues of US$1.29b and earnings per share (EPS) of US$3.80 in 2025. The analysts are less bullish than they were before these results, given the reduced revenue forecasts and the small dip in earnings per share expectations.

Despite the cuts to forecast earnings, there was no real change to the US$82.50 price target, showing that the analysts don't think the changes have a meaningful impact on its intrinsic value. 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 Albany International, with the most bullish analyst valuing it at US$92.00 and the most bearish at US$70.00 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.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. It's pretty clear that there is an expectation that Albany International's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 1.5% growth on an annualised basis. This is compared to a historical growth rate of 5.8% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 3.5% per year. Factoring in the forecast slowdown in growth, it seems obvious that Albany International is also expected to grow slower than other industry participants.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Albany International. Unfortunately, they also downgraded their revenue estimates, and our data indicates underperformance compared to the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. 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.

With that in mind, we wouldn't be too quick to come to a conclusion on Albany International. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Albany International going out to 2026, and you can see them free on our platform here..

You can also see whether Albany International is carrying too much debt, and whether its balance sheet is healthy, for free on our platform here.

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.

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