The quarterly results for Carlisle Companies Incorporated (NYSE:CSL) were released last week, making it a good time to revisit its performance. It looks like a credible result overall - although revenues of US$1.1b were in line with what the analysts predicted, Carlisle Companies surprised by delivering a statutory profit of US$1.87 per share, a notable 12% above expectations. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Carlisle Companies after the latest results.
Taking into account the latest results, the consensus forecast from Carlisle Companies' nine analysts is for revenues of US$4.52b in 2021, which would reflect a satisfactory 4.6% improvement in sales compared to the last 12 months. Statutory earnings per share are predicted to expand 16% to US$7.19. In the lead-up to this report, the analysts had been modelling revenues of US$4.52b and earnings per share (EPS) of US$7.29 in 2021. 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.
The analysts reconfirmed their price target of US$149, showing that the business is executing well and in line with expectations. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values Carlisle Companies at US$160 per share, while the most bearish prices it at US$140. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Carlisle Companies' past performance and to peers in the same industry. We would highlight that Carlisle Companies' revenue growth is expected to slow, with forecast 4.6% increase next year well below the historical 7.0%p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 6.4% per year. Factoring in the forecast slowdown in growth, it seems obvious that Carlisle Companies is also expected to grow slower than other industry participants.
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. On the plus side, there were no major changes to revenue estimates; although forecasts imply revenues will perform worse than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.
With that in mind, we wouldn't be too quick to come to a conclusion on Carlisle Companies. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Carlisle Companies going out to 2024, and you can see them free on our platform here..
However, before you get too enthused, we've discovered 1 warning sign for Carlisle Companies that you should be aware of.
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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