Yahoo Finance Blue Bird Corporation Just Recorded A 97% EPS Beat: Here's What Analysts Are Forecasting Next
As you might know, Blue Bird Corporation (NASDAQ:BLBD) just kicked off its latest quarterly results with some very strong numbers. Blue Bird delivered a significant beat to revenue and earnings per share (EPS) expectations, hitting US$346m-16% above indicated-andUS$0.79-97% above forecasts- respectively Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
See our latest analysis for Blue Bird
After the latest results, the five analysts covering Blue Bird are now predicting revenues of US$1.32b in 2024. If met, this would reflect a modest 4.8% improvement in revenue compared to the last 12 months. Per-share earnings are expected to accumulate 2.3% to US$2.54. Before this earnings report, the analysts had been forecasting revenues of US$1.25b and earnings per share (EPS) of US$2.02 in 2024. There's been a pretty noticeable increase in sentiment, with the analysts upgrading revenues and making a very substantial lift in earnings per share in particular.
With these upgrades, we're not surprised to see that the analysts have lifted their price target 15% to US$44.79per share. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on Blue Bird, with the most bullish analyst valuing it at US$54.00 and the most bearish at US$34.00 per share. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.
Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. The analysts are definitely expecting Blue Bird's growth to accelerate, with the forecast 9.9% annualised growth to the end of 2024 ranking favourably alongside historical growth of 2.4% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 3.6% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Blue Bird is expected to grow much faster than its industry.
The Bottom Line
The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Blue Bird's earnings potential next year. Happily, they also upgraded their revenue estimates, and are forecasting them to grow faster than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.
With that in mind, we wouldn't be too quick to come to a conclusion on Blue Bird. 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 Blue Bird going out to 2026, and you can see them free on our platform here..
However, before you get too enthused, we've discovered 1 warning sign for Blue Bird that you should be aware of.
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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.
