LCI Industries (NYSE:LCII) Just Reported Yearly Earnings: Have Analysts Changed Their Mind On The Stock?

Simply Wall St.
14 Feb

Investors in LCI Industries (NYSE:LCII) had a good week, as its shares rose 8.1% to close at US$109 following the release of its yearly results. Results were roughly in line with estimates, with revenues of US$3.7b and statutory earnings per share of US$5.60. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

See our latest analysis for LCI Industries

NYSE:LCII Earnings and Revenue Growth February 14th 2025

Taking into account the latest results, the current consensus from LCI Industries' ten analysts is for revenues of US$3.88b in 2025. This would reflect a credible 3.8% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to step up 20% to US$6.71. Before this earnings report, the analysts had been forecasting revenues of US$3.89b and earnings per share (EPS) of US$6.74 in 2025. 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.

The analysts reconfirmed their price target of US$119, showing that the business is executing well and in line with expectations. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic LCI Industries analyst has a price target of US$145 per share, while the most pessimistic values it at US$91.00. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

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 LCI Industries' revenue growth is expected to slow, with the forecast 3.8% annualised growth rate until the end of 2025 being well below the historical 8.1% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 8.1% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than LCI Industries.

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. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target held steady at US$119, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on LCI Industries. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple LCI Industries analysts - going out to 2026, and you can see them free on our platform here.

You should always think about risks though. Case in point, we've spotted 1 warning sign for LCI Industries you should be aware of.

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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.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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