Concrete Pumping Holdings, Inc. Just Reported A Surprise Loss: Here's What Analysts Think Will Happen Next

It's been a sad week for Concrete Pumping Holdings, Inc. (NASDAQ:BBCP), who've watched their investment drop 13% to US$5.46 in the week since the company reported its quarterly result. Revenues fell 4.2% short of expectations, at US$86m. Earnings correspondingly dipped, with Concrete Pumping Holdings reporting a statutory loss of US$0.06 per share, whereas the analysts had previously modelled a profit in this period. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

See our latest analysis for Concrete Pumping Holdings

Following last week's earnings report, Concrete Pumping Holdings' four analysts are forecasting 2025 revenues to be US$408.9m, approximately in line with the last 12 months. Statutory earnings per share are predicted to rise 7.7% to US$0.32. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$417.0m and earnings per share (EPS) of US$0.42 in 2025. The analysts seem to have become more bearish following the latest results. While there were no changes to revenue forecasts, there was a large cut to EPS estimates.

The consensus price target held steady at US$7.25, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values Concrete Pumping Holdings at US$9.00 per share, while the most bearish prices it at US$6.25. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

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. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 1.8% by the end of 2025. This indicates a significant reduction from annual growth of 9.5% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 7.7% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Concrete Pumping Holdings is expected to lag the wider industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment 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 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.

With that in mind, we wouldn't be too quick to come to a conclusion on Concrete Pumping Holdings. Long-term earnings power is much more important than next year's profits. We have forecasts for Concrete Pumping Holdings going out to 2027, and you can see them free on our platform here.

However, before you get too enthused, we've discovered 1 warning sign for Concrete Pumping Holdings that you should be aware 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.