Results: Installed Building Products, Inc. Beat Earnings Expectations And Analysts Now Have New Forecasts

Installed Building Products, Inc. (NYSE:IBP) just released its latest quarterly results and things are looking bullish. It was overall a positive result, with revenues beating expectations by 3.7% to hit US$778m. Installed Building Products reported statutory earnings per share (EPS) US$2.74, which was a notable 16% above what the analysts had forecast. The analysts 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

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Taking into account the latest results, Installed Building Products' eleven analysts currently expect revenues in 2026 to be US$3.01b, approximately in line with the last 12 months. Statutory per-share earnings are expected to be US$9.37, roughly flat on the last 12 months. In the lead-up to this report, the analysts had been modelling revenues of US$2.94b and earnings per share (EPS) of US$8.97 in 2026. So there seems to have been a moderate uplift in sentiment following the latest results, given the upgrades to both revenue and earnings per share forecasts for next year.

View our latest analysis for Installed Building Products

Althoughthe analysts have upgraded their earnings estimates, there was no change to the consensus price target of US$241, suggesting that the forecast performance does not have a long term impact on the company's valuation. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic Installed Building Products analyst has a price target of US$290 per share, while the most pessimistic values it at US$203. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. It's pretty clear that there is an expectation that Installed Building Products' revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 0.9% growth on an annualised basis. This is compared to a historical growth rate of 12% over the past five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 3.9% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Installed Building Products.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Installed Building Products' earnings potential next year. Fortunately, they also upgraded their revenue estimates, although our data indicates it is expected to perform worse than the wider industry. The consensus price target held steady at US$241, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Installed Building Products going out to 2027, and you can see them free on our platform here..

You should always think about risks though. Case in point, we've spotted 2 warning signs for Installed Building Products 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.