Yahoo Finance Analysts Just Slashed Their Lifestyle Communities Limited (ASX:LIC) EPS Numbers
The analysts covering Lifestyle Communities Limited (ASX:LIC) delivered a dose of negativity to shareholders today, by making a substantial revision to their statutory forecasts for this year. Both revenue and earnings per share (EPS) forecasts went under the knife, suggesting analysts have soured majorly on the business.
Following the latest downgrade, Lifestyle Communities' eight analysts currently expect revenues in 2024 to be AU$237m, approximately in line with the last 12 months. Statutory earnings per share are anticipated to descend 11% to AU$0.57 in the same period. Before this latest update, the analysts had been forecasting revenues of AU$268m and earnings per share (EPS) of AU$0.65 in 2024. It looks like analyst sentiment has declined substantially, with a measurable cut to revenue estimates and a real cut to earnings per share numbers as well.
See our latest analysis for Lifestyle Communities
The consensus price target fell 7.5% to AU$16.29, with the weaker earnings outlook clearly leading analyst valuation estimates.
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. These estimates imply that sales are expected to slow, with a forecast annualised revenue decline of 1.8% by the end of 2024. This indicates a significant reduction from annual growth of 15% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 8.5% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Lifestyle Communities is expected to lag the wider industry.
The Bottom Line
The biggest issue in the new estimates is that analysts have reduced their earnings per share estimates, suggesting business headwinds lay ahead for Lifestyle Communities. Regrettably, they also downgraded their revenue estimates, and the latest forecasts imply the business will grow sales slower than the wider market. Given the scope of the downgrades, it would not be a surprise to see the market become more wary of the business.
As you can see, the analysts clearly aren't bullish, and there might be good reason for that. We've identified some potential issues with Lifestyle Communities' financials, such as concerns around earnings quality. For more information, you can click here to discover this and the 1 other warning sign we've identified.
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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.
