LCI Industries (NYSE:LCII) Annual Results: Here's What Analysts Are Forecasting For This Year
Shareholders of LCI Industries (NYSE:LCII) will be pleased this week, given that the stock price is up 10% to US$124 following its latest full-year results. It was a credible result overall, with revenues of US$3.8b and statutory earnings per share of US$2.52 both in line with analyst estimates, showing that LCI Industries is executing in line with expectations. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
See our latest analysis for LCI Industries
Following the latest results, LCI Industries' seven analysts are now forecasting revenues of US$4.10b in 2024. This would be a solid 8.2% improvement in revenue compared to the last 12 months. Per-share earnings are expected to soar 119% to US$5.55. In the lead-up to this report, the analysts had been modelling revenues of US$4.01b and earnings per share (EPS) of US$6.37 in 2024. While next year's revenue estimates increased, there was also a real cut to EPS expectations, suggesting the consensus has a bit of a mixed view of these results.
There's been no major changes to the price target of US$114, suggesting that the impact of higher forecast revenue and lower earnings won't result in a meaningful change to the business' valuation. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values LCI Industries at US$148 per share, while the most bearish prices it at US$91.00. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.
Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that LCI Industries' revenue growth is expected to slow, with the forecast 8.2% annualised growth rate until the end of 2024 being well below the historical 16% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 11% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than LCI Industries.
The Bottom Line
The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for LCI Industries. Fortunately, they also upgraded their revenue estimates, although our data indicates it is expected to 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 LCI Industries. Long-term earnings power is much more important than next year's profits. We have forecasts for LCI Industries going out to 2025, and you can see them free on our platform here.
Before you take the next step you should know about the 4 warning signs for LCI Industries that we have uncovered.
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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.
