Installed Building Products, Inc. (NYSE:IBP) Just Reported And Analysts Have Been Lifting Their Price Targets
It's been a pretty great week for Installed Building Products, Inc. (NYSE:IBP) shareholders, with its shares surging 13% to US$234 in the week since its latest full-year results. The result was positive overall - although revenues of US$2.8b were in line with what the analysts predicted, Installed Building Products surprised by delivering a statutory profit of US$8.61 per share, modestly greater than expected. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
Check out our latest analysis for Installed Building Products
Taking into account the latest results, the current consensus from Installed Building Products' twelve analysts is for revenues of US$3.00b in 2024. This would reflect a credible 7.9% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to grow 17% to US$10.11. In the lead-up to this report, the analysts had been modelling revenues of US$2.89b and earnings per share (EPS) of US$9.06 in 2024. So it seems there's been a definite increase in optimism about Installed Building Products' future following the latest results, with a substantial gain in the earnings per share forecasts in particular.
With these upgrades, we're not surprised to see that the analysts have lifted their price target 24% to US$232per share. 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 Installed Building Products at US$260 per share, while the most bearish prices it at US$199. 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.
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 Installed Building Products' revenue growth is expected to slow, with the forecast 7.9% annualised growth rate until the end of 2024 being well below the historical 17% 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 5.0% annually. Even after the forecast slowdown in growth, it seems obvious that Installed Building Products is also expected to grow faster than the wider industry.
The Bottom Line
The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Installed Building Products' earnings potential next year. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than 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.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Installed Building Products going out to 2026, and you can see them free on our platform here..
It is also worth noting that we have found 2 warning signs for Installed Building Products that you need to take into consideration.
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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.
