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Last week saw the newest first-quarter earnings release from Cadre Holdings, Inc. (NYSE:CDRE), an important milestone in the company's journey to build a stronger business. It looks like a credible result overall - although revenues of US$112m were in line with what the analysts predicted, Cadre Holdings surprised by delivering a statutory profit of US$0.19 per share, a notable 15% above expectations. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
Check out our latest analysis for Cadre Holdings
After the latest results, the eight analysts covering Cadre Holdings are now predicting revenues of US$475.9m in 2023. If met, this would reflect a reasonable 2.3% improvement in sales compared to the last 12 months. Statutory earnings per share are predicted to jump 38% to US$0.84. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$478.6m and earnings per share (EPS) of US$0.83 in 2023. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.
There were no changes to revenue or earnings estimates or the price target of US$29.88, suggesting that the company has met expectations in its recent result. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Cadre Holdings, with the most bullish analyst valuing it at US$35.00 and the most bearish at US$25.00 per share. 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.
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 Cadre Holdings' revenue growth is expected to slow, with the forecast 3.1% annualised growth rate until the end of 2023 being well below the historical 10% growth over the last year. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 6.6% per year. Factoring in the forecast slowdown in growth, it seems obvious that Cadre Holdings is also expected to grow slower than other industry participants.