Last week, you might have seen that Magnera Corporation (NYSE:MAGN) released its quarterly result to the market. The early response was not positive, with shares down 6.0% to US$12.91 in the past week. It was a pretty negative result overall, with revenues of US$857m missing analyst predictions by 6.3%. Worse, the business reported a statutory loss of US$0.56 per share, a substantial decline on analyst expectations of a profit. 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 gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

Taking into account the latest results, the most recent consensus for Magnera from dual analysts is for revenues of US$3.43b in 2027. If met, it would imply an okay 4.4% increase on its revenue over the past 12 months. Magnera is also expected to turn profitable, with statutory earnings of US$1.21 per share. In the lead-up to this report, the analysts had been modelling revenues of US$3.48b and earnings per share (EPS) of US$0.91 in 2027. There was no real change to the revenue estimates, but the analysts do seem more bullish on earnings, given the considerable lift to earnings per share expectations following these results.

There's been no major changes to the consensus price target of US$15.50, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation.

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. We would highlight that Magnera's revenue growth is expected to slow, with the forecast 3.5% annualised growth rate until the end of 2027 being well below the historical 4.9% 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 5.4% annually. Factoring in the forecast slowdown in growth, it seems obvious that Magnera is also expected to grow slower than other industry participants.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Magnera's earnings potential next year. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Magnera's revenue is expected to perform worse than the wider industry. 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 Magnera. Long-term earnings power is much more important than next year's profits. We have analyst estimates for Magnera going out as far as 2028, and you can see them free on our platform here.

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

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.