Market forces rained on the parade of Carlisle Companies Incorporated (NYSE:CSL) shareholders today, when the analysts downgraded their forecasts for this year. This report focused on revenue estimates, and it looks as though the consensus view of the business has become substantially more conservative.
Following the latest downgrade, the five analysts covering Carlisle Companies provided consensus estimates of US$4.9b revenue in 2023, which would reflect a not inconsiderable 18% decline on its sales over the past 12 months. Statutory earnings per share are supposed to dip 7.1% to US$14.47 in the same period. Before this latest update, the analysts had been forecasting revenues of US$5.5b and earnings per share (EPS) of US$14.86 in 2023. Indeed, we can see that analyst sentiment has declined measurably after the new consensus came out, with a substantial drop in revenue estimates and a minor downgrade to EPS estimates to boot.
Check out our latest analysis for Carlisle Companies
NYSE:CSL Earnings and Revenue Growth October 13th 2023
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. These estimates imply that sales are expected to slow, with a forecast annualised revenue decline of 33% by the end of 2023. This indicates a significant reduction from annual growth of 8.0% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 4.2% annually for the foreseeable future. It's pretty clear that Carlisle Companies' revenues are expected to perform substantially worse than the wider industry.
The Bottom Line
The most important thing to take away is that analysts cut their earnings per share estimates, expecting a clear decline in business conditions. Unfortunately analysts also downgraded their revenue estimates, and industry data suggests that Carlisle Companies' revenues are expected to grow slower than the wider market. Often, one downgrade can set off a daisy-chain of cuts, especially if an industry is in decline. So we wouldn't be surprised if the market became a lot more cautious on Carlisle Companies after today.
Unfortunately, the earnings downgrade - if accurate - may also place pressure on Carlisle Companies' mountain of debt, which could lead to some belt tightening for shareholders. To see more of our financial analysis, you can click through to our free platform to learn more about its balance sheet and specific concerns we've identified.
Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months on our platform, here.