BlueLinx Holdings Inc. Just Beat Earnings Expectations: Here's What Analysts Think Will Happen Next

It's been a good week for BlueLinx Holdings Inc. (NYSE:BXC) shareholders, because the company has just released its latest quarterly results, and the shares gained 5.1% to US$109. Revenues were US$747m, approximately in line with whatthe analysts expected, although statutory earnings per share (EPS) crushed expectations, coming in at US$1.87, an impressive 73% ahead of estimates. 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 collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

See our latest analysis for BlueLinx Holdings

Taking into account the latest results, the consensus forecast from BlueLinx Holdings' four analysts is for revenues of US$3.08b in 2025. This reflects a satisfactory 4.3% improvement in revenue compared to the last 12 months. Per-share earnings are expected to soar 73% to US$6.13. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$3.13b and earnings per share (EPS) of US$6.68 in 2025. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a small dip in their earnings per share forecasts.

Althoughthe analysts have revised their earnings forecasts for next year, they've also lifted the consensus price target 10.0% to US$136, suggesting the revised estimates are not indicative of a weaker long-term future for the business. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic BlueLinx Holdings analyst has a price target of US$137 per share, while the most pessimistic values it at US$135. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

Of course, another way to look at these forecasts is to place them into context against the industry itself. The period to the end of 2025 brings more of the same, according to the analysts, with revenue forecast to display 3.4% growth on an annualised basis. That is in line with its 3.2% annual growth over the past five years. Compare this with the broader industry (in aggregate), which analyst estimates suggest will see revenues grow 5.4% annually. So it's pretty clear that BlueLinx Holdings is expected to grow slower than similar companies in the same industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for BlueLinx Holdings. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than 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 forecasts for BlueLinx Holdings going out to 2026, and you can see them free on our platform here.

It is also worth noting that we have found 2 warning signs for BlueLinx Holdings 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.