Yahoo Finance Century Communities, Inc. Just Recorded A 53% EPS Beat: Here's What Analysts Are Forecasting Next
A week ago, Century Communities, Inc. (NYSE:CCS) came out with a strong set of first-quarter numbers that could potentially lead to a re-rate of the stock. Statutory earnings performance was extremely strong, with revenue of US$924m beating expectations by 29% and earnings per share (EPS) of US$2.00, an impressive 53%ahead of expectations. 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'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 Century Communities
Taking into account the latest results, the consensus forecast from Century Communities' five analysts is for revenues of US$4.18b in 2024. This reflects an okay 7.5% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to swell 10% to US$10.06. Before this earnings report, the analysts had been forecasting revenues of US$4.05b and earnings per share (EPS) of US$10.24 in 2024. So it looks like there's been no major change in sentiment following the latest results, although the analysts have made a slight bump in to revenue forecasts.
It may not be a surprise to see thatthe analysts have reconfirmed their price target of US$94.40, implying that the uplift in revenue is not expected to greatly contribute to Century Communities's valuation in the near term. 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 Century Communities analyst has a price target of US$110 per share, while the most pessimistic values it at US$82.00. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.
Of course, another way to look at these forecasts is to place them into context against the industry itself. The period to the end of 2024 brings more of the same, according to the analysts, with revenue forecast to display 10% growth on an annualised basis. That is in line with its 12% 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 5.1% per year. So although Century Communities is expected to maintain its revenue growth rate, it's definitely expected to grow faster than 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. Happily, they also upgraded their revenue estimates, and are forecasting them 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.
With that in mind, we wouldn't be too quick to come to a conclusion on Century Communities. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Century Communities analysts - going out to 2026, and you can see them free on our platform here.
Don't forget that there may still be risks. For instance, we've identified 1 warning sign for Century Communities that you should be aware 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.
