Analysts Just Slashed Their Century Communities, Inc. (NYSE:CCS) EPS Numbers

The latest analyst coverage could presage a bad day for Century Communities, Inc. (NYSE:CCS), with the analysts making across-the-board cuts to their statutory estimates that might leave shareholders a little shell-shocked. Both revenue and earnings per share (EPS) forecasts went under the knife, suggesting analysts have soured majorly on the business.

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Following the latest downgrade, the current consensus, from the three analysts covering Century Communities, is for revenues of US$4.1b in 2025, which would reflect a small 6.5% reduction in Century Communities' sales over the past 12 months. Statutory earnings per share are supposed to nosedive 36% to US$6.49 in the same period. Before this latest update, the analysts had been forecasting revenues of US$4.6b and earnings per share (EPS) of US$9.33 in 2025. Indeed, we can see that the analysts are a lot more bearish about Century Communities' prospects, administering a substantial drop in revenue estimates and slashing their EPS estimates to boot.

See our latest analysis for Century Communities

Despite the cuts to forecast earnings, there was no real change to the US$86.00 price target, showing that the analysts don't think the changes have a meaningful impact on its intrinsic value.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. These estimates imply that sales are expected to slow, with a forecast annualised revenue decline of 8.6% by the end of 2025. This indicates a significant reduction from annual growth of 6.5% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 4.4% per year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Century Communities is expected to lag 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 Century Communities' revenues are expected to grow slower than the wider market. The lack of change in the price target is puzzling in light of the downgrade but, with a serious decline expected this year, we wouldn't be surprised if investors were a bit wary of Century Communities.

Still, the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Century Communities 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 downgrading their estimates. So you may also wish to search this free list of stocks with high insider ownership.

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