Earnings Beat: SunCoke Energy, Inc. Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Models

As you might know, SunCoke Energy, Inc. (NYSE:SXC) just kicked off its latest third-quarter results with some very strong numbers. Statutory earnings performance was extremely strong, with revenue of US$487m beating expectations by 39% and earnings per share (EPS) of US$0.26, an impressive 63%ahead of expectations. 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've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

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Following last week's earnings report, SunCoke Energy's two analysts are forecasting 2026 revenues to be US$1.81b, approximately in line with the last 12 months. Statutory earnings per share are expected to drop 15% to US$0.65 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$1.53b and earnings per share (EPS) of US$0.68 in 2026. While revenue forecasts have increased substantially, the analysts are a little more pessimistic on earnings, suggesting that the growth does not come without cost.

View our latest analysis for SunCoke Energy

The consensus price target fell 13% to US$10.50, suggesting that the analysts are primarily focused on earnings as the driver of value for this business.

Of course, another way to look at these forecasts is to place them into context against the industry itself. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 1.6% by the end of 2026. This indicates a significant reduction from annual growth of 8.1% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 7.9% per year. It's pretty clear that SunCoke Energy's revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for SunCoke Energy. 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 fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of SunCoke Energy's future valuation.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have analyst estimates for SunCoke Energy going out as far as 2027, and you can see them free on our platform here.

Even so, be aware that SunCoke Energy is showing 3 warning signs in our investment analysis , and 2 of those are significant...

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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.