In a disappointing turn of events for shareholders, analysts have downgraded their revenue forecasts for Carlisle Companies Incorporated (NYSE: CSL) this year. This downgrade is indicative of a weaker market outlook, suggesting that investors should temper their expectations. The current consensus among the five analysts covering Carlisle Companies is for revenues of US$4.9 billion in 2023, reflecting an 18% reduction in sales over the past year. Additionally, statutory earnings per share are expected to decrease by 7.1% to US$14.47 in the same period.
Previously, analysts had estimated revenues of US$5.5 billion and earnings per share (EPS) of US$14.86 in 2023. The recent update reveals a significant drop in revenue estimates and a slight dip in earnings per share figures, indicating a decline in analyst sentiment.
When examining these forecasts, it is important to consider the state of the industry as a whole. The estimates suggest that sales are expected to slow, with an anticipated annualized revenue decline of 33% by the end of 2023. This marks a substantial reduction from the industry’s average annual growth of 8.0% over the past five years. In contrast to Carlisle Companies, other companies in the same industry are projected to experience a 4.2% annual revenue growth rate. Therefore, Carlisle Companies is expected to underperform the broader industry.
One notable concern arising from these new estimates is the lowered earnings per share figures, which point to potential business challenges ahead for Carlisle Companies. Furthermore, the downgraded revenue forecasts suggest that the company’s sales growth will lag behind the overall market. Given this pronounced shift in sentiment, it is understandable that investors may adopt a more cautious stance towards Carlisle Companies.
The significant debt load and the magnitude of this downgrade are also causes for concern, particularly if they are indicative of an impending business downturn. To gain further insights into the company’s financials and specific concerns, interested parties can access our free platform.
It is also worth considering any recent stock transactions made by company management and directors. An overview of all open market stock trades over the past twelve months can be found on our platform.
Feedback on this article or concerns about its content can be directly addressed to us or emailed to the editorial team at Simply Wall St. Please note that this article is of a general nature and is based on historical data and analyst forecasts. It does not constitute financial advice, nor does it take into account individual objectives or financial situations. Our analysis aims to provide unbiased, long-term focused analysis driven by fundamental data. It is important to note that our analysis may not incorporate the latest price-sensitive company announcements or qualitative material. Simply Wall St holds no positions in any stocks mentioned.
Definitions:
– Revenue: The total amount of money generated by a company’s business activities.
– Earnings per share (EPS): The portion of a company’s profit allocated to each outstanding share of common stock.
– Annualized: Calculating a rate over a year, based on a shorter period.
– Debt burden: The level of debt that a company carries.
– Industry average: The mean value of a specific measure across all companies within a particular industry.
– Market outlook: An assessment of the overall condition and future prospects of a particular market.
– Analyst sentiment: The overall opinion of analysts regarding a company’s stock performance.
– Business downturn: A period of economic decline characterized by reduced sales, profits, and activity in general.
Sources:
– Simply Wall St: https://simplywall.st/
– Carlisle Companies Incorporated: https://www.carlisle.com/