Yahoo Finance Analyst Estimates: Here's What Brokers Think Of AirBoss of America Corp. (TSE:BOS) After Its First-Quarter Report
It's been a good week for AirBoss of America Corp. (TSE:BOS) shareholders, because the company has just released its latest first-quarter results, and the shares gained 3.4% to CA$6.04. Revenues of US$103m beat expectations by a respectable 2.9%, although statutory losses per share increased. AirBoss of America lost US$0.18, which was 350% more than what the analysts had included in their models. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
Check out our latest analysis for AirBoss of America
Taking into account the latest results, the most recent consensus for AirBoss of America from four analysts is for revenues of US$435.3m in 2024. If met, it would imply an okay 5.5% increase on its revenue over the past 12 months. Earnings are expected to improve, with AirBoss of America forecast to report a statutory profit of US$0.01 per share. Before this earnings report, the analysts had been forecasting revenues of US$440.2m and earnings per share (EPS) of US$0.015 in 2024. So there's definitely been a decline in sentiment after the latest results, noting the large cut to new EPS forecasts.
It might be a surprise to learn that the consensus price target was broadly unchanged at CA$6.10, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on 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. There are some variant perceptions on AirBoss of America, with the most bullish analyst valuing it at CA$7.49 and the most bearish at CA$4.70 per share. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.
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. We can infer from the latest estimates that forecasts expect a continuation of AirBoss of America'shistorical trends, as the 7.5% annualised revenue growth to the end of 2024 is roughly in line with the 7.2% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 3.1% annually. So it's pretty clear that AirBoss of America is forecast to grow substantially faster than its industry.
The Bottom Line
The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster 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.
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 forecasts for AirBoss of America going out to 2025, and you can see them free on our platform here.
You still need to take note of risks, for example - AirBoss of America has 2 warning signs we think 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.
