Yahoo Finance Leslie's, Inc. (NASDAQ:LESL) Just Reported First-Quarter Earnings: Have Analysts Changed Their Mind On The Stock?
As you might know, Leslie's, Inc. (NASDAQ:LESL) just kicked off its latest quarterly results with some very strong numbers. It looks like a positive result overall, with revenues of US$174m beating forecasts by 2.6%. Statutory losses of US$0.21 per share were 2.6% smaller than the analysts expected, likely helped along by the higher revenues. 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.
See our latest analysis for Leslie's
Taking into account the latest results, Leslie's' eleven analysts currently expect revenues in 2024 to be US$1.44b, approximately in line with the last 12 months. Per-share earnings are expected to shoot up 147% to US$0.24. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$1.44b and earnings per share (EPS) of US$0.23 in 2024. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.
There's been no major changes to the consensus price target of US$6.31, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Leslie's at US$8.00 per share, while the most bearish prices it at US$5.00. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Leslie's shareholders.
Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We would highlight that Leslie's' revenue growth is expected to slow, with the forecast 1.1% annualised growth rate until the end of 2024 being well below the historical 7.7% p.a. growth over the last three years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 5.3% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Leslie's.
The Bottom Line
The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Leslie's' earnings potential next year. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Leslie's' revenue is expected to perform worse 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.
With that in mind, we wouldn't be too quick to come to a conclusion on Leslie's. Long-term earnings power is much more important than next year's profits. We have forecasts for Leslie's going out to 2026, and you can see them free on our platform here.
That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 5 warning signs with Leslie's (at least 2 which make us uncomfortable) , and understanding these should be part of your investment process.
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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.
