Earnings Beat: CCL Industries Inc. Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Models

CCL Industries Inc. (TSE:CCL.B) just released its latest quarterly results and things are looking bullish. It was overall a positive result, with revenues beating expectations by 4.6% to hit CA$1.8b. CCL Industries also reported a statutory profit of CA$1.55, which was an impressive 53% above what the analysts had forecast. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

Check out our latest analysis for CCL Industries

Taking into account the latest results, the most recent consensus for CCL Industries from eleven analysts is for revenues of CA$7.18b in 2024. If met, it would imply a modest 3.5% increase on its revenue over the past 12 months. Per-share earnings are expected to step up 11% to CA$4.23. Yet prior to the latest earnings, the analysts had been anticipated revenues of CA$7.04b and earnings per share (EPS) of CA$4.14 in 2024. So the consensus seems to have become somewhat more optimistic on CCL Industries' earnings potential following these results.

There's been no major changes to the consensus price target of CA$84.55, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's 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 CCL Industries analyst has a price target of CA$90.00 per share, while the most pessimistic values it at CA$80.00. This is a very narrow spread of estimates, implying either that CCL Industries is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

Of course, another way to look at these forecasts is to place them into context against the industry itself. The period to the end of 2024 brings more of the same, according to the analysts, with revenue forecast to display 7.2% growth on an annualised basis. That is in line with its 6.3% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 3.7% per year. So although CCL Industries is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards CCL Industries following these results. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

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 CCL Industries analysts - going out to 2025, and you can see them free on our platform here.

We don't want to rain on the parade too much, but we did also find 1 warning sign for CCL Industries that you need to be mindful 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.