Century Communities, Inc. Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Predictions

Century Communities, Inc. (NYSE:CCS) just released its quarterly report and things are looking bullish. Statutory earnings performance was extremely strong, with revenue of US$924m beating expectations by 29% and earnings per share (EPS) of US$2.00, an impressive 53%ahead of expectations. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

View our latest analysis for Century Communities

Taking into account the latest results, the consensus forecast from Century Communities' four analysts is for revenues of US$4.10b in 2024. This reflects a modest 5.5% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to step up 10% to US$10.06. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$4.05b and earnings per share (EPS) of US$10.24 in 2024. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

The analysts reconfirmed their price target of US$94.40, showing that the business is executing well and in line with expectations. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on Century Communities, with the most bullish analyst valuing it at US$110 and the most bearish at US$82.00 per share. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that Century Communities' revenue growth is expected to slow, with the forecast 7.4% annualised growth rate until the end of 2024 being well below the historical 12% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 5.1% per year. So it's pretty clear that, while Century Communities' revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at US$94.40, with the latest estimates not enough to have an impact on their price targets.

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 forecasts for Century Communities going out to 2026, and you can see them free on our platform here.

However, before you get too enthused, we've discovered 1 warning sign for Century Communities that you should be aware of.

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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.