Results: Leon's Furniture Limited Exceeded Expectations And The Consensus Has Updated Its Estimates

As you might know, Leon's Furniture Limited (TSE:LNF) recently reported its quarterly numbers. Revenues were CA$679m, approximately in line with expectations, although statutory earnings per share (EPS) performed substantially better. EPS of CA$0.73 were also better than expected, beating analyst predictions by 17%. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

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After the latest results, the seven analysts covering Leon's Furniture are now predicting revenues of CA$2.65b in 2026. If met, this would reflect a satisfactory 3.1% improvement in revenue compared to the last 12 months. Statutory per share are forecast to be CA$2.55, approximately in line with the last 12 months. Before this earnings report, the analysts had been forecasting revenues of CA$2.66b and earnings per share (EPS) of CA$2.45 in 2026. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

Check out our latest analysis for Leon's Furniture

The analysts have been lifting their price targets on the back of the earnings upgrade, with the consensus price target rising 5.1% to CA$35.57. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Leon's Furniture, with the most bullish analyst valuing it at CA$50.00 and the most bearish at CA$30.00 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 Leon's Furniture's rate of growth is expected to accelerate meaningfully, with the forecast 2.5% annualised revenue growth to the end of 2026 noticeably faster than its historical growth of 1.8% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to see revenue growth of 11% annually. So it's clear that despite the acceleration in growth, Leon's Furniture is expected to grow meaningfully slower than the industry average.

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 Leon's Furniture following these results. 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 in mind, we wouldn't be too quick to come to a conclusion on Leon's Furniture. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Leon's Furniture going out to 2027, and you can see them free on our platform here..

Even so, be aware that Leon's Furniture is showing 2 warning signs in our investment analysis , you should know about...

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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.