LCI Industries Just Beat EPS By 24%: Here's What Analysts Think Will Happen Next

As you might know, LCI Industries (NYSE:LCII) just kicked off its latest quarterly results with some very strong numbers. The company beat forecasts, with revenue of US$1.0b, some 7.5% above estimates, and statutory earnings per share (EPS) coming in at US$1.94, 24% ahead of 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.

We've discovered 1 warning sign about LCI Industries. View them for free.

Taking into account the latest results, the most recent consensus for LCI Industries from seven analysts is for revenues of US$3.94b in 2025. If met, it would imply a reasonable 3.2% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to increase 4.9% to US$6.47. Before this earnings report, the analysts had been forecasting revenues of US$3.86b and earnings per share (EPS) of US$6.57 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.

Check out our latest analysis for LCI Industries

With no major changes to earnings forecasts, the consensus price target fell 7.3% to US$103, suggesting that the analysts might have previously been hoping for an earnings upgrade. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values LCI Industries at US$135 per share, while the most bearish prices it at US$80.00. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

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 LCI Industries' revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 4.2% growth on an annualised basis. This is compared to a historical growth rate of 5.8% over the past five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 9.6% annually. Factoring in the forecast slowdown in growth, it seems obvious that LCI Industries is also expected to grow slower than other industry participants.

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. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that LCI Industries' revenue is expected to perform worse than the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of LCI Industries' future valuation.

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 estimates - from multiple LCI Industries analysts - going out to 2026, and you can see them free on our platform here.

It is also worth noting that we have found 1 warning sign for LCI Industries 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.