Analyst Estimates: Here's What Brokers Think Of CRH plc (LON:CRH) After Its Interim Report

As you might know, CRH plc (LON:CRH) recently reported its interim numbers. It was a workmanlike result, with revenues of US$16b coming in 3.1% ahead of expectations, and statutory earnings per share of US$3.31, in line with analyst appraisals. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

See our latest analysis for CRH

Taking into account the latest results, the 21 analysts covering CRH provided consensus estimates of US$31.9b revenue in 2022, which would reflect a measurable 2.8% decline on its sales over the past 12 months. Statutory per share are forecast to be US$3.76, approximately in line with the last 12 months. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$31.1b and earnings per share (EPS) of US$3.31 in 2022. There's been a pretty noticeable increase in sentiment, with the analysts upgrading revenues and making a nice gain to earnings per share in particular.

Althoughthe analysts have upgraded their earnings estimates, there was no change to the consensus price target of UK£42.09, suggesting that the forecast performance does not have a long term impact on the company's valuation. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. The most optimistic CRH analyst has a price target of UK£46.00 per share, while the most pessimistic values it at UK£39.50. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the CRH's past performance and to peers in the same industry. We would highlight that sales are expected to reverse, with a forecast 5.4% annualised revenue decline to the end of 2022. That is a notable change from historical growth of 2.8% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 4.1% per year. It's pretty clear that CRH's revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around CRH's earnings potential next year. Fortunately, they also upgraded their revenue estimates, although our data indicates sales are expected to perform worse than the wider industry. The consensus price target held steady at UK£42.09, with the latest estimates not enough to have an impact on their price targets.

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 CRH analysts - going out to 2024, and you can see them free on our platform here.

You can also view our analysis of CRH's balance sheet, and whether we think CRH is carrying too much debt, for free on our platform 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.