Party Time: Brokers Just Made Major Increases To Their Comfort Systems USA, Inc. (NYSE:FIX) Earnings Forecasts

Comfort Systems USA, Inc. (NYSE:FIX) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's statutory forecasts. The consensus statutory numbers for both revenue and earnings per share (EPS) increased, with their view clearly much more bullish on the company's business prospects. The market may be pricing in some blue sky too, with the share price gaining 15% to US$285 in the last 7 days. We'll be curious to see if these new estimates convince the market to lift the stock price higher still.

Following the upgrade, the latest consensus from Comfort Systems USA's four analysts is for revenues of US$6.6b in 2024, which would reflect a substantial 26% improvement in sales compared to the last 12 months. Statutory earnings per share are presumed to climb 18% to US$10.69. Prior to this update, the analysts had been forecasting revenues of US$5.9b and earnings per share (EPS) of US$9.62 in 2024. There has definitely been an improvement in perception recently, with the analysts substantially increasing both their earnings and revenue estimates.

View our latest analysis for Comfort Systems USA

With these upgrades, we're not surprised to see that the analysts have lifted their price target 18% to US$259 per share.

Of course, another way to look at these forecasts is to place them into context against the industry itself. The analysts are definitely expecting Comfort Systems USA's growth to accelerate, with the forecast 26% annualised growth to the end of 2024 ranking favourably alongside historical growth of 17% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 7.3% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Comfort Systems USA is expected to grow much faster than its industry.

The Bottom Line

The most important thing to take away from this upgrade is that analysts upgraded their earnings per share estimates for this year, expecting improving business conditions. They also upgraded their revenue estimates for this year, and sales are expected to grow faster than the wider market. With a serious upgrade to expectations and a rising price target, it might be time to take another look at Comfort Systems USA.

Still, the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Comfort Systems USA analysts - going out to 2026, and you can see them free on our platform here.

Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are upgrading their estimates. So you may also wish to search this free list of stocks that insiders are buying.

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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.