Century Communities, Inc. (NYSE:CCS) investors will be delighted, with the company turning in some strong numbers with its latest results. The company beat expectations with revenues of US$1.1b arriving 2.7% ahead of forecasts. Statutory earnings per share (EPS) were US$2.59, 2.9% ahead of estimates. 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.

View our latest analysis for Century Communities

Following the latest results, Century Communities' five analysts are now forecasting revenues of US$4.70b in 2025. This would be a notable 8.6% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to expand 19% to US$12.29. In the lead-up to this report, the analysts had been modelling revenues of US$4.62b and earnings per share (EPS) of US$12.19 in 2025. 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$106. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. Currently, the most bullish analyst values Century Communities at US$119 per share, while the most bearish prices it at US$96.00. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

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. We would highlight that Century Communities' revenue growth is expected to slow, with the forecast 6.9% annualised growth rate until the end of 2025 being well below the historical 9.0% 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) 6.0% annually. So it's pretty clear that, while Century Communities' revenue growth is expected to slow, it's expected to grow roughly in line with the industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider 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.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have forecasts for Century Communities going out to 2026, and you can see them free on our platform here.

You still need to take note of risks, for example - Century Communities has 2 warning signs (and 1 which is concerning) we think you should know about.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.