Analysts Are Updating Their Beacon Lighting Group Limited (ASX:BLX) Estimates After Its Annual Results

Shareholders might have noticed that Beacon Lighting Group Limited (ASX:BLX) filed its yearly result this time last week. The early response was not positive, with shares down 3.9% to AU$3.46 in the past week. Revenues of AU$329m were in line with forecasts, although statutory earnings per share (EPS) came in below expectations at AU$0.13, missing estimates by 4.6%. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

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Taking into account the latest results, the current consensus from Beacon Lighting Group's seven analysts is for revenues of AU$349.5m in 2026. This would reflect an okay 6.1% increase on its revenue over the past 12 months. Per-share earnings are expected to swell 14% to AU$0.15. Yet prior to the latest earnings, the analysts had been anticipated revenues of AU$361.3m and earnings per share (EPS) of AU$0.16 in 2026. It's pretty clear that pessimism has reared its head after the latest results, leading to a weaker revenue outlook and a small dip in earnings per share estimates.

View our latest analysis for Beacon Lighting Group

Despite the cuts to forecast earnings, there was no real change to the AU$3.62 price target, showing that the analysts don't think the changes have a meaningful impact on its intrinsic value. 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. There are some variant perceptions on Beacon Lighting Group, with the most bullish analyst valuing it at AU$4.28 and the most bearish at AU$2.90 per share. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. It's clear from the latest estimates that Beacon Lighting Group's rate of growth is expected to accelerate meaningfully, with the forecast 6.1% annualised revenue growth to the end of 2026 noticeably faster than its historical growth of 4.3% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 5.6% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Beacon Lighting Group is expected to grow at about the same rate as the wider industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. 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. The consensus price target held steady at AU$3.62, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates - from multiple Beacon Lighting Group analysts - going out to 2028, and you can see them free on our platform here.

We also provide an overview of the Beacon Lighting Group Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, here.

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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.