Last week, you might have seen that Concrete Pumping Holdings, Inc. (NASDAQ:BBCP) released its first-quarter result to the market. The early response was not positive, with shares down 4.8% to US$7.80 in the past week. Things were not great overall, with a surprise (statutory) loss of US$0.08 per share on revenues of US$98m, even though the analysts had been expecting a profit. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
Taking into account the latest results, the most recent consensus for Concrete Pumping Holdings from five analysts is for revenues of US$467.6m in 2024. If met, it would imply a credible 4.7% increase on its revenue over the past 12 months. Per-share earnings are expected to bounce 23% to US$0.43. In the lead-up to this report, the analysts had been modelling revenues of US$471.0m and earnings per share (EPS) of US$0.53 in 2024. The analysts seem to have become more bearish following the latest results. While there were no changes to revenue forecasts, there was a real cut to EPS estimates.
Althoughthe analysts have revised their earnings forecasts for next year, they've also lifted the consensus price target 5.3% to US$9.88, suggesting the revised estimates are not indicative of a weaker long-term future for the business. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic Concrete Pumping Holdings analyst has a price target of US$11.00 per share, while the most pessimistic values it at US$8.50. 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.
Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We would highlight that Concrete Pumping Holdings' revenue growth is expected to slow, with the forecast 6.4% annualised growth rate until the end of 2024 being well below the historical 12% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 7.6% annually. So it's pretty clear that, while Concrete Pumping Holdings' revenue growth is expected to slow, it's expected to grow roughly in line with the industry.
The Bottom Line
The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Concrete Pumping Holdings. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as 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 Concrete Pumping Holdings going out to 2026, and you can see them free on our platform here..
Plus, you should also learn about the 2 warning signs we've spotted with Concrete Pumping Holdings (including 1 which makes us a bit uncomfortable) .
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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.