Yahoo Finance Results: CCL Industries Inc. Exceeded Expectations And The Consensus Has Updated Its Estimates
As you might know, CCL Industries Inc. (TSE:CCL.B) recently reported its first-quarter numbers. The result was positive overall - although revenues of CA$1.7b were in line with what the analysts predicted, CCL Industries surprised by delivering a statutory profit of CA$1.07 per share, modestly greater than expected. 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.
See our latest analysis for CCL Industries
Taking into account the latest results, the current consensus from CCL Industries' ten analysts is for revenues of CA$7.02b in 2024. This would reflect a satisfactory 4.3% increase on its revenue over the past 12 months. Yet prior to the latest earnings, the analysts had been anticipated revenues of CA$7.02b and earnings per share (EPS) of CA$3.84 in 2024. So we can see that while the consensus made no real change to its revenue estimates, it also no longer provides an earnings per share estimate. This suggests that revenues are what the market is focusing on after the latest results.
We'd also point out that thatthe analysts have made no major changes to their price target of CA$82.09. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on CCL Industries, with the most bullish analyst valuing it at CA$84.00 and the most bearish at CA$79.00 per share. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.
Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We can infer from the latest estimates that forecasts expect a continuation of CCL Industries'historical trends, as the 5.7% annualised revenue growth to the end of 2024 is roughly in line with the 5.9% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 3.7% per year. So it's pretty clear that CCL Industries is forecast to grow substantially faster than its industry.
The Bottom Line
The most important thing to take away is that the analysts reconfirmed their revenue estimates for next year, suggesting that the business is performing in line with expectations. Happily, there were no major changes to revenue forecasts, with the business still 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.
At least one of CCL Industries' ten analysts has provided estimates out to 2025, which can be seen for free on our platform here.
And what about risks? Every company has them, and we've spotted 1 warning sign for CCL Industries you should know about.
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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.
