Beacon Lighting Group Limited (ASX:BLX) Analysts Are Pretty Bullish On The Stock After Recent Results

The half-yearly results for Beacon Lighting Group Limited (ASX:BLX) were released last week, making it a good time to revisit its performance. It was a credible result overall, with revenues of AU$171m and statutory earnings per share of AU$0.13 both in line with analyst estimates, showing that Beacon Lighting Group is executing in line with 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

Check out our latest analysis for Beacon Lighting Group

Following last week's earnings report, Beacon Lighting Group's seven analysts are forecasting 2025 revenues to be AU$332.4m, approximately in line with the last 12 months. Statutory earnings per share are predicted to rise 4.0% to AU$0.14. Yet prior to the latest earnings, the analysts had been anticipated revenues of AU$336.6m and earnings per share (EPS) of AU$0.14 in 2025. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

With the analysts reconfirming their revenue and earnings forecasts, it's surprising to see that the price target rose 8.8% to AU$3.42. It looks as though they previously had some doubts over whether the business would live up to their expectations. 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 Beacon Lighting Group, with the most bullish analyst valuing it at AU$3.96 and the most bearish at AU$2.60 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.

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 Beacon Lighting Group's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 0.8% growth on an annualised basis. This is compared to a historical growth rate of 5.5% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 4.9% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Beacon Lighting Group.

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. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

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 Beacon Lighting Group analysts - going out to 2027, 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.