Legacy Housing Corporation Beat Analyst Estimates: See What The Consensus Is Forecasting For Next Year

Legacy Housing Corporation (NASDAQ:LEGH) shareholders are probably feeling a little disappointed, since its shares fell 5.0% to US$25.90 in the week after its latest quarterly results. Results look mixed - while revenue fell marginally short of analyst estimates at US$44m, statutory earnings beat expectations 6.2%, with Legacy Housing reporting profits of US$0.64 per share. 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 Legacy Housing

Taking into account the latest results, the most recent consensus for Legacy Housing from three analysts is for revenues of US$189.8m in 2025. If met, it would imply a notable 16% increase on its revenue over the past 12 months. Per-share earnings are expected to ascend 12% to US$2.51. In the lead-up to this report, the analysts had been modelling revenues of US$198.5m and earnings per share (EPS) of US$2.59 in 2025. It's pretty clear that pessimism has reared its head after the latest results, leading to a weaker revenue outlook and a minor downgrade to earnings per share estimates.

Despite the cuts to forecast earnings, there was no real change to the US$31.50 price target, showing that the analysts don't think the changes have a meaningful impact on its intrinsic value. 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 Legacy Housing at US$34.00 per share, while the most bearish prices it at US$29.00. 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.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. It's clear from the latest estimates that Legacy Housing's rate of growth is expected to accelerate meaningfully, with the forecast 13% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 4.1% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 5.8% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Legacy Housing to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Regrettably, they also downgraded their revenue estimates, but the latest forecasts still imply the business will grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

With that in mind, we wouldn't be too quick to come to a conclusion on Legacy Housing. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Legacy Housing going out to 2026, and you can see them free on our platform here..

You can also view our analysis of Legacy Housing's balance sheet, and whether we think Legacy Housing is carrying too much debt, for free on our platform here.

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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.