Results: NWPX Infrastructure, Inc. Beat Earnings Expectations And Analysts Now Have New Forecasts

Explore NWPX Infrastructure's Fair Values from the Community and select yours

NWPX Infrastructure, Inc. (NASDAQ:NWPX) just released its latest quarterly results and things are looking bullish. NWPX Infrastructure delivered a significant beat to revenue and earnings per share (EPS) expectations, hitting US$133m-10% above indicated-andUS$0.91-27% above forecasts- respectively The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

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Taking into account the latest results, NWPX Infrastructure's three analysts currently expect revenues in 2025 to be US$502.0m, approximately in line with the last 12 months. Statutory earnings per share are forecast to drop 14% to US$2.98 in the same period. In the lead-up to this report, the analysts had been modelling revenues of US$489.7m and earnings per share (EPS) of US$2.92 in 2025. So there seems to have been a moderate uplift in sentiment following the latest results, given the upgrades to both revenue and earnings per share forecasts for next year.

View our latest analysis for NWPX Infrastructure

Althoughthe analysts have upgraded their earnings estimates, there was no change to the consensus price target of US$55.00, suggesting that the forecast performance does not have a long term impact on the company's valuation. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. Currently, the most bullish analyst values NWPX Infrastructure at US$60.00 per share, while the most bearish prices it at US$50.00. This is a very narrow spread of estimates, implying either that NWPX Infrastructure is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the NWPX Infrastructure's past performance and to peers in the same industry. We would highlight that NWPX Infrastructure's revenue growth is expected to slow, with the forecast 1.1% annualised growth rate until the end of 2025 being well below the historical 12% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 9.2% annually. Factoring in the forecast slowdown in growth, it seems obvious that NWPX Infrastructure is also expected to grow slower than other industry participants.

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 NWPX Infrastructure following these results. Fortunately, they also upgraded their revenue estimates, although our data indicates it is expected to perform worse than the wider industry. The consensus price target held steady at US$55.00, with the latest estimates not enough to have an impact on their price targets.

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 NWPX Infrastructure analysts - going out to 2027, and you can see them free on our platform here.

You can also view our analysis of NWPX Infrastructure's balance sheet, and whether we think NWPX Infrastructure is carrying too much debt, for free on our platform here.

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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.