The yearly results for Carel Industries S.p.A. (BIT:CRL) were released last week, making it a good time to revisit its performance. It was an okay report, and revenues came in at €331m, approximately in line with analyst estimates leading up to the results announcement. This is an important time for investors, as they can track a company's performance in its report, look at what top analysts are forecasting for next year, and see if there has been any change to expectations for the business. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
Following the latest results, Carel Industries's one analyst are now forecasting revenues of €344.8m in 2020. This would be a modest 4.2% improvement in sales compared to the last 12 months. Before this earnings result, analysts had predicted €351.7m revenue in 2020, although there was no accompanying EPS estimate. It looks like the latest results have met analyst expectations and confirmed that the business is performing in line with expectations, given there's been no real changes in the new revenue estimates.
We'd also point out that that analysts have made no major changes to their price target of €14.00.
Further, we can compare these estimates to past performance, and see how Carel Industries forecasts compare to the wider market's forecast performance. It's pretty clear that analysts expect Carel Industries's revenue growth will slow down substantially, with revenues next year expected to grow 4.2%, compared to a historical growth rate of 12% over the past three years. Compare this against other companies (with analyst forecasts) in the market, which are in aggregate expected to see revenue growth of 6.1% next year. Factoring in the forecast slowdown in growth, it seems obvious that analysts still expect Carel Industries to grow slower than the wider market.
The Bottom Line
The most important thing to take away from these updates is that analysts are definitely optimistic on the business, given that they've begun forecasting positive per-share earnings for next year. Fortunately, analysts also reconfirmed their revenue estimates, suggesting sales are tracking in line with expectations - although our data does suggest that Carel Industries's revenues are expected to perform worse than the wider market. The consensus price target held steady at €14.00, with the latest estimates not enough to have an impact on analysts' estimated valuations.
One Carel Industries broker/analyst has provided estimates out to 2022, which can be seen for free on our platform here.
You can also see whether Carel Industries is carrying too much debt, and whether its balance sheet is healthy, for free on our platform here.
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