The quarterly results for Janus International Group, Inc. (NYSE:JBI) were released last week, making it a good time to revisit its performance. Janus International Group reported US$255m in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of US$0.21 beat expectations, being 8.0% higher than what the analysts expected. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
Following the latest results, Janus International Group's seven analysts are now forecasting revenues of US$1.10b in 2024. This would be a modest 3.3% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to increase 3.8% to US$1.00. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$1.10b and earnings per share (EPS) of US$1.00 in 2024. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.
It will come as no surprise then, to learn that the consensus price target is largely unchanged at US$17.93. 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. Currently, the most bullish analyst values Janus International Group at US$21.00 per share, while the most bearish prices it at US$14.50. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.
Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. It's pretty clear that there is an expectation that Janus International Group's revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 4.4% growth on an annualised basis. This is compared to a historical growth rate of 21% over the past three years. Compare this to the 49 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 5.2% per year. So it's pretty clear that, while Janus International Group's revenue growth is expected to slow, it's expected to grow roughly in line with the industry.
The Bottom Line
The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall 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 Janus International Group. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Janus International Group analysts - going out to 2026, and you can see them free on our platform here.
Plus, you should also learn about the 1 warning sign we've spotted with Janus International Group .
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