Yahoo Finance Eagle Materials Inc. Just Reported A Surprise Loss: Here's What Analysts Think Will Happen Next
Eagle Materials Inc. (NYSE:EXP) shares fell 3.9% to US$87.57 in the week since its latest third-quarter results. Revenues came in at US$350m, in line with estimates, while Eagle Materials reported a statutory loss of US$2.77 per share, well short of prior analyst forecasts for a profit. Earnings are an important time for investors, as they can track a company's performance, look at what top analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether analysts have changed their mind on Eagle Materials after the latest results.
Check out our latest analysis for Eagle Materials
Taking into account the latest results, the most recent consensus for Eagle Materials from eleven analysts is for revenues of US$1.56b in 2021, which is a notable 9.8% increase on its sales over the past 12 months. Earnings are expected to improve, with Eagle Materials forecast to report a statutory profit of US$6.27 per share. Before this earnings report, analysts had been forecasting revenues of US$1.53b and earnings per share (EPS) of US$6.13 in 2021. It looks like there's been a modest increase in sentiment following the latest results, with analysts becoming a bit more optimistic in their predictions for both revenues and earnings.
Despite these upgrades, analysts have not made any major changes to their price target of US$105, suggesting that the higher estimates are not likely to have a long term impact on what the stock is worth. 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. Currently, the most bullish analyst values Eagle Materials at US$133 per share, while the most bearish prices it at US$90.00. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.
It can be useful to take a broader overview by seeing how analyst forecasts compare, both to the Eagle Materials's past performance and to peers in the same market. Analysts are definitely expecting Eagle Materials's growth to accelerate, with the forecast 9.8% growth ranking favourably alongside historical growth of 6.7% 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 6.6% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Eagle Materials is expected to grow much faster than its market.
The Bottom Line
The biggest takeaway for us from these new estimates is that the consensus upgraded its earnings per share estimates, showing a clear improvement in sentiment around Eagle Materials's earnings potential next year. Pleasantly, analysts also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider market. The consensus price target held steady at US$105, with the latest estimates not enough to have an impact on analysts' estimated valuations.
Still, the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Eagle Materials analysts - going out to 2024, and you can see them free on our platform here.
You can also see whether Eagle Materials is carrying too much debt, and whether its balance sheet is healthy, for free on our platform here.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.
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