Results: Floor & Decor Holdings, Inc. Beat Earnings Expectations And Analysts Now Have New Forecasts

Last week, you might have seen that Floor & Decor Holdings, Inc. (NYSE:FND) released its yearly result to the market. The early response was not positive, with shares down 3.4% to US$94.27 in the past week. Revenues were US$4.5b, approximately in line with expectations, although statutory earnings per share (EPS) performed substantially better. EPS of US$1.90 were also better than expected, beating analyst predictions by 11%. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

Check out our latest analysis for Floor & Decor Holdings

After the latest results, the 23 analysts covering Floor & Decor Holdings are now predicting revenues of US$4.84b in 2025. If met, this would reflect a notable 8.6% improvement in revenue compared to the last 12 months. Statutory per share are forecast to be US$1.95, approximately in line with the last 12 months. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$4.85b and earnings per share (EPS) of US$1.95 in 2025. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at US$106. 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. Currently, the most bullish analyst values Floor & Decor Holdings at US$130 per share, while the most bearish prices it at US$66.00. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

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. We would highlight that Floor & Decor Holdings' revenue growth is expected to slow, with the forecast 8.6% annualised growth rate until the end of 2025 being well below the historical 16% 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) 5.3% per year. So it's pretty clear that, while Floor & Decor Holdings' 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. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. The consensus price target held steady at US$106, 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. We have estimates - from multiple Floor & Decor Holdings analysts - going out to 2027, and you can see them free on our platform here.

You can also see whether Floor & Decor Holdings is carrying too much debt, and whether its balance sheet is healthy, for free on our platform here.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.