It's been a good week for CSW Industrials, Inc. (NASDAQ:CSWI) shareholders, because the company has just released its latest yearly results, and the shares gained 8.9% to US$262. Results were roughly in line with estimates, with revenues of US$793m and statutory earnings per share of US$6.52. 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.
Taking into account the latest results, the consensus forecast from CSW Industrials' dual analysts is for revenues of US$839.6m in 2025. This reflects an okay 5.9% improvement in revenue compared to the last 12 months. Per-share earnings are expected to soar 23% to US$8.07. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$831.5m and earnings per share (EPS) of US$8.23 in 2025. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a small dip in their earnings per share forecasts.
Despite cutting their earnings forecasts,the analysts have lifted their price target 18% to US$268, suggesting that these impacts are not expected to weigh on the stock's value in the long term.
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. We would highlight that CSW Industrials' revenue growth is expected to slow, with the forecast 5.9% annualised growth rate until the end of 2025 being well below the historical 19% p.a. growth over the last five years. Compare this to the 49 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 5.7% per year. Factoring in the forecast slowdown in growth, it looks like CSW Industrials is forecast to grow at about the same rate as 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. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have analyst estimates for CSW Industrials going out as far as 2026, and you can see them free on our platform here.
And what about risks? Every company has them, and we've spotted 1 warning sign for CSW Industrials you should know about.
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.