Eagle Materials Inc. (NYSE:EXP) just released its latest quarterly report and things are not looking great. Results look to have been somewhat negative - revenue fell 3.7% short of analyst estimates at US$624m, and statutory earnings of US$4.26 per share missed forecasts by 8.9%. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

View our latest analysis for Eagle Materials

Following last week's earnings report, Eagle Materials' eight analysts are forecasting 2025 revenues to be US$2.31b, approximately in line with the last 12 months. Statutory earnings per share are predicted to accumulate 4.7% to US$15.09. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$2.35b and earnings per share (EPS) of US$15.51 in 2025. The analysts seem to have become a little more negative on the business after the latest results, given the minor downgrade to their earnings per share numbers for next year.

The consensus price target held steady at US$309, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values Eagle Materials at US$333 per share, while the most bearish prices it at US$265. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Eagle Materials' past performance and to peers in the same industry. It's pretty clear that there is an expectation that Eagle Materials' revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 3.9% growth on an annualised basis. This is compared to a historical growth rate of 11% over the past five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 6.5% annually. Factoring in the forecast slowdown in growth, it seems obvious that Eagle Materials is also expected to grow slower than other industry participants.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Eagle Materials' revenue is expected to perform worse than the wider industry. The consensus price target held steady at US$309, 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 Eagle Materials. Long-term earnings power is much more important than next year's profits. We have forecasts for Eagle Materials going out to 2027, 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 Eagle Materials 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.