Yahoo Finance CSW Industrials, Inc. Just Recorded A 13% EPS Beat: Here's What Analysts Are Forecasting Next
CSW Industrials, Inc. (NASDAQ:CSWI) defied analyst predictions to release its first-quarter results, which were ahead of market expectations. It was overall a positive result, with revenues beating expectations by 4.9% to hit US$226m. CSW Industrials reported statutory earnings per share (EPS) US$2.47, which was a notable 13% above what the analysts had forecast. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
View our latest analysis for CSW Industrials
Taking into account the latest results, the current consensus from CSW Industrials' three analysts is for revenues of US$848.0m in 2025. This would reflect a satisfactory 4.0% increase on its revenue over the past 12 months. Per-share earnings are expected to step up 20% to US$8.47. Before this earnings report, the analysts had been forecasting revenues of US$840.8m and earnings per share (EPS) of US$8.14 in 2025. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.
The consensus price target rose 8.9% to US$302, suggesting that higher earnings estimates flow through to the stock's valuation as well. 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 CSW Industrials, with the most bullish analyst valuing it at US$350 and the most bearish at US$260 per share. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.
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. It's pretty clear that there is an expectation that CSW Industrials' revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 5.3% growth on an annualised basis. This is compared to a historical growth rate of 19% over the past five years. Compare this to the 48 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 5.2% per year. So it's pretty clear that, while CSW Industrials' revenue growth is expected to slow, it's expected to grow roughly in line with the industry.
The Bottom Line
The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around CSW Industrials' earnings potential next year. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall 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 CSW Industrials. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple CSW Industrials analysts - going out to 2026, and you can see them free on our platform here.
You can also view our analysis of CSW Industrials' balance sheet, and whether we think CSW Industrials is carrying too much debt, for free on our platform here.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
