These Analysts Think Carlisle Companies Incorporated's (NYSE:CSL) Sales Are Under Threat

One thing we could say about the analysts on Carlisle Companies Incorporated (NYSE:CSL) - they aren't optimistic, having just made a major negative revision to their near-term (statutory) forecasts for the organization. Revenue estimates were cut sharply as analysts signalled a weaker outlook - perhaps a sign that investors should temper their expectations as well.

Following the latest downgrade, the current consensus, from the five analysts covering Carlisle Companies, is for revenues of US$4.9b in 2023, which would reflect an uneasy 18% reduction in Carlisle Companies' sales over the past 12 months. Statutory earnings per share are supposed to shrink 7.1% to US$14.47 in the same period. Previously, the analysts had been modelling revenues of US$5.5b and earnings per share (EPS) of US$14.86 in 2023. Indeed, we can see that analyst sentiment has declined measurably after the new consensus came out, with a substantial drop in revenue estimates and a small dip in EPS estimates to boot.

See our latest analysis for Carlisle Companies

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. We would highlight that sales are expected to reverse, with a forecast 33% annualised revenue decline to the end of 2023. That is a notable change from historical growth of 8.0% 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 4.2% annually for the foreseeable future. It's pretty clear that Carlisle Companies' revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The most important thing to take away is that analysts cut their earnings per share estimates, expecting a clear decline in business conditions. Unfortunately analysts also downgraded their revenue estimates, and industry data suggests that Carlisle Companies' revenues are expected to grow slower than the wider market. Given the stark change in sentiment, we'd understand if investors became more cautious on Carlisle Companies after today.

Unfortunately, the earnings downgrade - if accurate - may also place pressure on Carlisle Companies' mountain of debt, which could lead to some belt tightening for shareholders. See why we're concerned about Carlisle Companies' balance sheet by visiting our risks dashboard for free on our platform here.

We also provide an overview of the Carlisle Companies Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, here.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.