Analysts' Revenue Estimates For CSW Industrials, Inc. (NASDAQ:CSWI) Are Surging Higher
Celebrations may be in order for CSW Industrials, Inc. (NASDAQ:CSWI) shareholders, with the analysts delivering a significant upgrade to their statutory estimates for the company. The consensus estimated revenue numbers rose, with their view now clearly much more bullish on the company's business prospects. The market seems to be pricing in some improvement in the business too, with the stock up 8.8% over the past week, closing at US$128. Whether the upgrade is enough to drive the stock price higher is yet to be seen, however.
Following the upgrade, the current consensus from CSW Industrials' dual analysts is for revenues of US$624m in 2022 which - if met - would reflect a major 27% increase on its sales over the past 12 months. Per-share earnings are expected to soar 35% to US$4.29. Previously, the analysts had been modelling revenues of US$552m and earnings per share (EPS) of US$3.96 in 2022. The forecasts seem more optimistic now, with a nice gain to revenue and a modest lift to earnings per share estimates.
View our latest analysis for CSW Industrials
With these upgrades, we're not surprised to see that the analysts have lifted their price target 8.9% to US$153 per share. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. Currently, the most bullish analyst values CSW Industrials at US$163 per share, while the most bearish prices it at US$142. With such a narrow range of valuations, analysts apparently share similar views on what they think the business is worth.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the CSW Industrials' past performance and to peers in the same industry. The analysts are definitely expecting CSW Industrials' growth to accelerate, with the forecast 38% annualised growth to the end of 2022 ranking favourably alongside historical growth of 8.3% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 5.4% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect CSW Industrials to grow faster than the wider industry.
The Bottom Line
The biggest takeaway for us from these new estimates is that analysts upgraded their earnings per share estimates, with improved earnings power expected for this year. They also upgraded their revenue estimates for this year, and sales are expected to grow faster than the wider market. There was also a nice increase in the price target, with analysts apparently feeling that the intrinsic value of the business is improving. Given that analysts appear to be expecting substantial improvement in the sales pipeline, now could be the right time to take another look at CSW Industrials.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At least one analyst has provided forecasts out to 2023, which can be seen for free on our platform here.
You can also see our analysis of CSW Industrials' Board and CEO remuneration and experience, and whether company insiders have been buying stock.
This article by Simply Wall St is general in nature. 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.
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