Upgrade: Analysts Just Made A Meaningful Increase To Their Century Communities, Inc. (NYSE:CCS) Forecasts
Century Communities, Inc. (NYSE:CCS) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's forecasts. Consensus estimates suggest investors could expect greatly increased statutory revenues and earnings per share, with analysts modelling a real improvement in business performance.
After this upgrade, Century Communities' four analysts are now forecasting revenues of US$4.0b in 2024. This would be a solid 8.9% improvement in sales compared to the last 12 months. Per-share earnings are expected to leap 21% to US$9.87. Previously, the analysts had been modelling revenues of US$3.6b and earnings per share (EPS) of US$8.49 in 2024. So we can see there's been a pretty clear increase in analyst sentiment in recent times, with both revenues and earnings per share receiving a decent lift in the latest estimates.
See our latest analysis for Century Communities
With these upgrades, we're not surprised to see that the analysts have lifted their price target 8.2% to US$92.00 per share.
One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. It's pretty clear that there is an expectation that Century Communities' revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 8.9% growth on an annualised basis. This is compared to a historical growth rate of 13% over the past five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 4.7% per year. Even after the forecast slowdown in growth, it seems obvious that Century Communities is also expected to grow faster than the wider industry.
The Bottom Line
The most important thing to take away from this upgrade is that analysts upgraded their earnings per share estimates for this year, expecting improving business conditions. They also upgraded their revenue estimates for this year, and sales are expected to grow faster than the wider market. Given that the consensus looks almost universally bullish, with a substantial increase to forecasts and a higher price target, Century Communities could be worth investigating further.
Still, the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Century Communities analysts - going out to 2025, and you can see them free on our platform here.
You can also see our analysis of Century Communities' Board and CEO remuneration and experience, and whether company insiders have been buying stock.
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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.
