It's been a good week for BlueLinx Holdings Inc. (NYSE:BXC) shareholders, because the company has just released its latest quarterly results, and the shares gained 5.1% to US$109. It looks like a credible result overall - although revenues of US$747m were what the analysts expected, BlueLinx Holdings surprised by delivering a (statutory) profit of US$1.87 per share, an impressive 73% above what was forecast. 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.

See our latest analysis for BlueLinx Holdings

After the latest results, the four analysts covering BlueLinx Holdings are now predicting revenues of US$3.08b in 2025. If met, this would reflect a satisfactory 4.3% improvement in revenue compared to the last 12 months. Per-share earnings are expected to bounce 73% to US$6.13. In the lead-up to this report, the analysts had been modelling revenues of US$3.13b and earnings per share (EPS) of US$6.68 in 2025. The analysts seem to have become a little more negative on the business after the latest results, given the small dip in their earnings per share numbers for next year.

Despite cutting their earnings forecasts,the analysts have lifted their price target 10.0% to US$136, suggesting that these impacts are not expected to weigh on the stock's value in the long term. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values BlueLinx Holdings at US$137 per share, while the most bearish prices it at US$135. This is a very narrow spread of estimates, implying either that BlueLinx Holdings is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

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. The period to the end of 2025 brings more of the same, according to the analysts, with revenue forecast to display 3.4% growth on an annualised basis. That is in line with its 3.2% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 5.4% per year. So although BlueLinx Holdings is expected to maintain its revenue growth rate, it's forecast to grow slower than the wider industry.

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 BlueLinx Holdings' revenue is expected to perform worse than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

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

It is also worth noting that we have found 2 warning signs for BlueLinx Holdings that you need to take into consideration.

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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.