Cedar Woods Properties Limited (ASX:CWP) Released Earnings Last Week And Analysts Lifted Their Price Target To AU$7.95

Cedar Woods Properties Limited (ASX:CWP) shareholders are probably feeling a little disappointed, since its shares fell 2.1% to AU$7.49 in the week after its latest full-year results. Cedar Woods Properties reported AU$466m in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of AU$0.58 beat expectations, being 2.8% higher than what the analysts expected. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

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Taking into account the latest results, the consensus forecast from Cedar Woods Properties' three analysts is for revenues of AU$509.3m in 2026. This reflects a meaningful 9.3% improvement in revenue compared to the last 12 months. Per-share earnings are expected to climb 13% to AU$0.66. Before this earnings report, the analysts had been forecasting revenues of AU$519.9m and earnings per share (EPS) of AU$0.66 in 2026. The consensus seems maybe a little more pessimistic, trimming their revenue forecasts after the latest results even though there was no change to its EPS estimates.

Check out our latest analysis for Cedar Woods Properties

The analysts have also increased their price target 7.9% to AU$7.95, clearly signalling that lower revenue forecasts next year are not expected to have a material impact on Cedar Woods Properties' valuation. 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 Cedar Woods Properties analyst has a price target of AU$8.75 per share, while the most pessimistic values it at AU$6.43. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Cedar Woods Properties is an easy business to forecast or the the analysts are all using similar assumptions.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Cedar Woods Properties' past performance and to peers in the same industry. The period to the end of 2026 brings more of the same, according to the analysts, with revenue forecast to display 9.3% growth on an annualised basis. That is in line with its 11% annual growth over the past five years. Juxtapose this against our data, which suggests that other companies (with analyst coverage) in the industry are forecast to see their revenues grow 8.2% per year. It's clear that while Cedar Woods Properties' revenue growth is expected to continue on its current trajectory, it's only expected to grow in line with the industry itself.

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 downgraded their revenue estimates, although as we saw earlier, forecast growth is only expected to be about the same as the wider industry. Yet - earnings are more important to the intrinsic value of the business. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

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. At Simply Wall St, we have a full range of analyst estimates for Cedar Woods Properties going out to 2028, and you can see them free on our platform here..

You should always think about risks though. Case in point, we've spotted 1 warning sign for Cedar Woods Properties 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.