Yahoo Finance CSW Industrials, Inc. Just Missed EPS By 33%: Here's What Analysts Think Will Happen Next
It's been a good week for CSW Industrials, Inc. (NASDAQ:CSWI) shareholders, because the company has just released its latest quarterly results, and the shares gained 7.7% to US$220. Statutory earnings per share fell badly short of expectations, coming in at US$0.59, some 33% below analyst forecasts, although revenues were okay, approximately in line with analyst estimates at US$175m. 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 gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
Check out our latest analysis for CSW Industrials
Taking into account the latest results, the current consensus from CSW Industrials' twin analysts is for revenues of US$827.8m in 2025. This would reflect an okay 6.4% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to surge 27% to US$7.94. Before this earnings report, the analysts had been forecasting revenues of US$829.1m and earnings per share (EPS) of US$7.91 in 2025. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.
With the analysts reconfirming their revenue and earnings forecasts, it's surprising to see that the price target rose 14% to US$227. It looks as though they previously had some doubts over whether the business would live up to their expectations.
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 CSW Industrials' revenue growth is expected to slow, with the forecast 5.1% annualised growth rate until the end of 2025 being well below the historical 20% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 5.0% annually. Factoring in the forecast slowdown in growth, it looks like CSW Industrials is forecast to grow at about the same rate as the wider industry.
The Bottom Line
The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.
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. At least one analyst has provided forecasts out to 2026, which can be seen for 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.
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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.
