Lanson-BCC Just Recorded A 28% EPS Beat: Here's What Analysts Are Forecasting Next

Lanson-BCC (EPA:ALLAN) shareholders are probably feeling a little disappointed, since its shares fell 4.9% to €41.10 in the week after its latest annual results. It looks like a credible result overall - although revenues of €272m were what the analysts expected, Lanson-BCC surprised by delivering a (statutory) profit of €5.44 per share, an impressive 28% above what was 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.

See our latest analysis for Lanson-BCC

Following the latest results, Lanson-BCC's twin analysts are now forecasting revenues of €286.6m in 2024. This would be a satisfactory 5.5% improvement in revenue compared to the last 12 months. Statutory earnings per share are forecast to shrink 5.0% to €5.26 in the same period. Before this earnings report, the analysts had been forecasting revenues of €282.1m and earnings per share (EPS) of €4.21 in 2024. There was no real change to the revenue estimates, but the analysts do seem more bullish on earnings, given the considerable lift to earnings per share expectations following these results.

The analysts have been lifting their price targets on the back of the earnings upgrade, with the consensus price target rising 18% to €57.00.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. The analysts are definitely expecting Lanson-BCC's growth to accelerate, with the forecast 5.5% annualised growth to the end of 2024 ranking favourably alongside historical growth of 2.2% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 5.0% annually. Lanson-BCC is expected to grow at about the same rate as its industry, so it's not clear that we can draw any conclusions from its growth relative to competitors.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Lanson-BCC's earnings potential next year. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. 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. We have analyst estimates for Lanson-BCC going out as far as 2025, and you can see them free on our platform here.

It is also worth noting that we have found 2 warning signs for Lanson-BCC (1 is potentially serious!) that you need to take into consideration.

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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.