It’s been a good week for Carlisle Companies Incorporated (NYSE:CSL) shareholders, because the company has just released its latest yearly results, and the shares gained 4.2% to US$163. The result was positive overall – although revenues of US$4.8b were in line with what analysts predicted, Carlisle Companies surprised by delivering a statutory profit of US$8.19 per share, modestly greater than expected. This is an important time for investors, as they can track a company’s performance in its report, look at what top analysts are forecasting for next year, and see if there has been any change to expectations for the business. With this in mind, we’ve gathered the latest statutory forecasts to see what analysts are expecting for next year.
Following the latest results, Carlisle Companies’s five analysts are now forecasting revenues of US$5.04b in 2020. This would be a satisfactory 4.7% improvement in sales compared to the last 12 months. Statutory earnings per share are expected to accumulate 6.6% to US$8.87. In the lead-up to this report, analysts had been modelling revenues of US$5.08b and earnings per share (EPS) of US$8.95 in 2020. 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$175. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company’s valuation. There are some variant perceptions on Carlisle Companies, with the most bullish analyst valuing it at US$191 and the most bearish at US$150 per share. Still, with such a tight range of estimates, it suggests analysts have a pretty good idea of what they think the company is worth.
Another way to assess these estimates is by comparing them to past performance, and seeing whether analysts are more or less bullish relative to other companies in the market. We would highlight that Carlisle Companies’s revenue growth is expected to slow, with forecast 4.7% increase next year well below the historical 8.1%p.a. growth over the last five years. Juxtapose this against the other companies in the market with analyst coverage, which are forecast to grow their revenues (in aggregate) 2.9% next year. So it’s pretty clear that, while Carlisle Companies’s revenue growth is expected to slow, it’s still expected to grow faster than the market itself.
The Bottom Line
The most obvious conclusion from these results is that there’s been no major change in the business’ prospects in recent times, with analysts holding earnings per share steady, in line with previous estimates. Fortunately, analysts also reconfirmed their revenue estimates, suggesting sales are tracking in line with expectations – and our data does suggest that Carlisle Companies’s revenues are expected to grow faster than the wider market. The consensus price target held steady at US$175, with the latest estimates not enough to have an impact on analysts’ estimated valuations.
Still, the long-term prospects of the business are much more relevant than next year’s earnings. At Simply Wall St, we have a full range of analyst estimates for Carlisle Companies going out to 2021, and you can see them free on our platform here..
You can also see whether Carlisle Companies is carrying too much debt, and whether its balance sheet is healthy, for free on our platform here.
If you spot an error that warrants correction, please contact the editor at email@example.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.
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