Yahoo Finance Boise Cascade Company Beat Analyst Estimates: See What The Consensus Is Forecasting For This Year
Boise Cascade Company (NYSE:BCC) just released its latest first-quarter results and things are looking bullish. It was overall a positive result, with revenues beating expectations by 5.2% to hit US$1.6b. Boise Cascade reported statutory earnings per share (EPS) US$2.61, which was a notable 14% above what the analysts had forecast. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
View our latest analysis for Boise Cascade
Following last week's earnings report, Boise Cascade's five analysts are forecasting 2024 revenues to be US$6.99b, approximately in line with the last 12 months. Statutory earnings per share are forecast to fall 13% to US$10.82 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$7.10b and earnings per share (EPS) of US$11.56 in 2024. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a minor downgrade to their earnings per share forecasts.
The consensus price target held steady at US$147, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Boise Cascade analyst has a price target of US$175 per share, while the most pessimistic values it at US$130. 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. We would highlight that Boise Cascade's revenue growth is expected to slow, with the forecast 1.0% annualised growth rate until the end of 2024 being well below the historical 11% 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 5.7% annually. Factoring in the forecast slowdown in growth, it seems obvious that Boise Cascade is also expected to grow slower than other industry participants.
The Bottom Line
The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Boise Cascade. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Boise Cascade's revenue is expected to perform worse than the wider industry. The consensus price target held steady at US$147, with the latest estimates not enough to have an impact on their price targets.
Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for Boise Cascade going out to 2026, and you can see them free on our platform here..
Even so, be aware that Boise Cascade is showing 3 warning signs in our investment analysis , and 1 of those can't be ignored...
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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.
