Yahoo Finance The Eagle Materials Inc. (NYSE:EXP) Yearly Results Are Out And Analysts Have Published New Forecasts
Eagle Materials Inc. (NYSE:EXP) shareholders are probably feeling a little disappointed, since its shares fell 8.8% to US$236 in the week after its latest annual results. Revenues of US$2.3b were in line with forecasts, although statutory earnings per share (EPS) came in below expectations at US$13.61, missing estimates by 4.1%. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
See our latest analysis for Eagle Materials
Taking into account the latest results, the most recent consensus for Eagle Materials from ten analysts is for revenues of US$2.41b in 2025. If met, it would imply an okay 6.8% increase on its revenue over the past 12 months. Per-share earnings are expected to step up 13% to US$15.93. In the lead-up to this report, the analysts had been modelling revenues of US$2.44b and earnings per share (EPS) of US$16.24 in 2025. 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.
It will come as no surprise then, to learn that the consensus price target is largely unchanged at US$279. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Eagle Materials analyst has a price target of US$320 per share, while the most pessimistic values it at US$245. 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.
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. It's pretty clear that there is an expectation that Eagle Materials' revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 6.8% growth on an annualised basis. This is compared to a historical growth rate of 12% over the past five years. Compare this to the 14 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 6.5% per year. Factoring in the forecast slowdown in growth, it looks like Eagle Materials is forecast to grow at about the same rate as 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. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. The consensus price target held steady at US$279, with the latest estimates not enough to have an impact on their price targets.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Eagle Materials analysts - going out to 2027, and you can see them free on our platform here.
You still need to take note of risks, for example - Eagle Materials has 1 warning sign we think 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.
