CECO Environmental Corp. Just Missed EPS By 61%: Here's What Analysts Think Will Happen Next

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As you might know, CECO Environmental Corp. (NASDAQ:CECO) last week released its latest third-quarter, and things did not turn out so great for shareholders. It looks like quite a negative result overall, with both revenues and earnings falling well short of analyst predictions. Revenues of US$136m missed by 13%, and statutory earnings per share of US$0.06 fell short of forecasts by 61%. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

View our latest analysis for CECO Environmental

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NasdaqGS:CECO Earnings and Revenue Growth November 1st 2024

Taking into account the latest results, the most recent consensus for CECO Environmental from six analysts is for revenues of US$689.8m in 2025. If met, it would imply a major 25% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to bounce 202% to US$1.03. In the lead-up to this report, the analysts had been modelling revenues of US$671.9m and earnings per share (EPS) of US$1.11 in 2025. So it's pretty clear consensus is mixed on CECO Environmental after the latest results; whilethe analysts lifted revenue numbers, they also administered a small dip in per-share earnings expectations.

The consensus price target was unchanged at US$34.50, suggesting the business is performing roughly in line with expectations, despite some adjustments to profit and revenue forecasts. 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. There are some variant perceptions on CECO Environmental, with the most bullish analyst valuing it at US$35.00 and the most bearish at US$33.00 per share. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. The analysts are definitely expecting CECO Environmental's growth to accelerate, with the forecast 19% annualised growth to the end of 2025 ranking favourably alongside historical growth of 13% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 6.6% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect CECO Environmental to grow faster than the wider industry.

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