Yahoo Finance Cohen & Steers, Inc. Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now
Investors in Cohen & Steers, Inc. (NYSE:CNS) had a good week, as its shares rose 3.5% to close at US$72.39 following the release of its quarterly results. It was not a great result overall. While revenues of US$123m were in line with analyst predictions, earnings were less than expected, missing statutory estimates by 13% to hit US$0.68 per share. 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 thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
Check out our latest analysis for Cohen & Steers
Taking into account the latest results, the current consensus from Cohen & Steers' twin analysts is for revenues of US$499.0m in 2024. This would reflect a satisfactory 2.6% increase on its revenue over the past 12 months. Per-share earnings are expected to leap 21% to US$3.12. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$509.8m and earnings per share (EPS) of US$3.11 in 2024. The consensus seems maybe a little more pessimistic, trimming their revenue forecasts after the latest results even though there was no change to its EPS estimates.
The consensus has reconfirmed its price target of US$67.67, showing that the analysts don't expect weaker revenue expectations next year to have a material impact on Cohen & Steers' market value.
One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We would highlight that Cohen & Steers' revenue growth is expected to slow, with the forecast 3.5% annualised growth rate until the end of 2024 being well below the historical 7.1% 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 6.9% annually. Factoring in the forecast slowdown in growth, it seems obvious that Cohen & Steers is also expected to grow slower than other industry participants.
The Bottom Line
The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Unfortunately, they also downgraded their revenue estimates, and our data indicates underperformance compared to the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. Still, earnings are more important to the intrinsic value of the business. The consensus price target held steady at US$67.67, with the latest estimates not enough to have an impact on their price targets.
With that in mind, we wouldn't be too quick to come to a conclusion on Cohen & Steers. Long-term earnings power is much more important than next year's profits. At least one analyst has provided forecasts out to 2026, which can be seen for free on our platform here.
You still need to take note of risks, for example - Cohen & Steers 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.
