The AZEK Company Inc. Just Recorded A 81% EPS Beat: Here's What Analysts Are Forecasting Next

The AZEK Company Inc. (NYSE:AZEK) just released its quarterly report and things are looking bullish. It was overall a positive result, with revenues beating expectations by 8.3% to hit US$285m. AZEK also reported a statutory profit of US$0.12, which was an impressive 81% above what the analysts had forecast. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

Check out our latest analysis for AZEK

Taking into account the latest results, the consensus forecast from AZEK's 18 analysts is for revenues of US$1.55b in 2025. This reflects a reasonable 4.1% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to grow 16% to US$1.18. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$1.53b and earnings per share (EPS) of US$1.14 in 2025. So the consensus seems to have become somewhat more optimistic on AZEK's earnings potential following these results.

There's been no major changes to the consensus price target of US$57.26, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. 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 AZEK at US$64.00 per share, while the most bearish prices it at US$41.90. 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.

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. It's pretty clear that there is an expectation that AZEK's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 5.5% growth on an annualised basis. This is compared to a historical growth rate of 11% over the past five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 5.0% annually. Factoring in the forecast slowdown in growth, it looks like AZEK is forecast to grow at about the same rate as 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 AZEK'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. The consensus price target held steady at US$57.26, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates - from multiple AZEK analysts - going out to 2027, and you can see them free on our platform here.

Plus, you should also learn about the 1 warning sign we've spotted with AZEK .

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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.