Luxfer Holdings PLC Just Beat Earnings Expectations: Here's What Analysts Think Will Happen Next

Luxfer Holdings PLC (NYSE:LXFR) just released its quarterly report and things are looking bullish. The company beat forecasts, with revenue of US$89m, some 7.8% above estimates, and statutory earnings per share (EPS) coming in at US$0.10, 100% ahead of expectations. The analyst typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We've gathered the most recent statutory forecasts to see whether the analyst has changed their earnings models, following these results.

Check out our latest analysis for Luxfer Holdings

Following the recent earnings report, the consensus from lone analyst covering Luxfer Holdings is for revenues of US$375.9m in 2024. This implies a small 4.4% decline in revenue compared to the last 12 months. Luxfer Holdings is also expected to turn profitable, with statutory earnings of US$0.68 per share. Before this earnings report, the analyst had been forecasting revenues of US$369.4m and earnings per share (EPS) of US$0.64 in 2024. So the consensus seems to have become somewhat more optimistic on Luxfer Holdings' earnings potential following these results.

The consensus price target fell 44% to US$15.00, suggesting the increase in earnings forecasts was not enough to offset other the analyst concerns.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Luxfer Holdings' past performance and to peers in the same industry. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 5.8% by the end of 2024. This indicates a significant reduction from annual growth of 0.8% 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 3.6% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Luxfer Holdings is expected to lag 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 Luxfer Holdings' earnings potential next year. Fortunately, the analyst also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Luxfer Holdings' revenue is expected to perform worse than the wider industry. The consensus price target fell measurably, with the analyst seemingly not reassured by the latest results, leading to a lower estimate of Luxfer Holdings' future valuation.

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 analyst estimates for Luxfer Holdings going out as far as 2025, and you can see them free on our platform here.

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

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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.