Yahoo Finance Earnings Miss: CECO Environmental Corp. Missed EPS By 23% And Analysts Are Revising Their Forecasts
The analysts might have been a bit too bullish on CECO Environmental Corp. (NASDAQ:CECO), given that the company fell short of expectations when it released its first-quarter results last week. It wasn't a great result overall - while revenue fell marginally short of analyst estimates at US$126m, statutory earnings missed forecasts by an incredible 23%, coming in at just US$0.04 per share. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
Check out our latest analysis for CECO Environmental
After the latest results, the five analysts covering CECO Environmental are now predicting revenues of US$598.1m in 2024. If met, this would reflect a credible 7.1% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to leap 99% to US$0.71. In the lead-up to this report, the analysts had been modelling revenues of US$601.1m and earnings per share (EPS) of US$0.70 in 2024. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.
The analysts reconfirmed their price target of US$27.00, showing that the business is executing well and in line with expectations. 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. The most optimistic CECO Environmental analyst has a price target of US$30.00 per share, while the most pessimistic values it at US$23.00. This is a very narrow spread of estimates, implying either that CECO Environmental is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.
Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. The period to the end of 2024 brings more of the same, according to the analysts, with revenue forecast to display 9.5% growth on an annualised basis. That is in line with its 10% 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 6.7% per year. So although CECO Environmental is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.
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. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. The consensus price target held steady at US$27.00, with the latest estimates not enough to have an impact on their price targets.
Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have forecasts for CECO Environmental going out to 2026, and you can see them free on our platform here.
We don't want to rain on the parade too much, but we did also find 2 warning signs for CECO Environmental that you need to be mindful 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.
