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Investors in Fleetwood Limited (ASX:FWD) had a good week, as its shares rose 3.8% to close at AU$1.78 following the release of its yearly results. Revenues were in line with forecasts, at AU$420m, although statutory earnings per share came in 13% below what the analysts expected, at AU$0.04 per share. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
Check out our latest analysis for Fleetwood
Taking into account the latest results, the consensus forecast from Fleetwood's dual analysts is for revenues of AU$459.7m in 2025. This reflects a notable 9.5% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to leap 415% to AU$0.21. Yet prior to the latest earnings, the analysts had been anticipated revenues of AU$465.0m and earnings per share (EPS) of AU$0.20 in 2025. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.
There's been no major changes to the consensus price target of AU$2.18, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation.
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 Fleetwood's growth to accelerate, with the forecast 9.5% annualised growth to the end of 2025 ranking favourably alongside historical growth of 7.3% 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 6.2% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Fleetwood is expected to grow much faster than its industry.
The Bottom Line
The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Fleetwood's earnings potential next year. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at AU$2.18, with the latest estimates not enough to have an impact on their price targets.