AirBoss of America Corp. Just Missed Earnings - But Analysts Have Updated Their Models
As you might know, AirBoss of America Corp. (TSE:BOS) last week released its latest third-quarter, and things did not turn out so great for shareholders. It wasn't a great result overall - while revenue fell marginally short of analyst estimates at US$99m, statutory earnings missed forecasts by 17%, coming in at just US$0.05 per share. 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 gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
After the latest results, the twin analysts covering AirBoss of America are now predicting revenues of US$441.3m in 2027. If met, this would reflect a credible 5.5% improvement in revenue compared to the last 12 months. Earnings are expected to improve, with AirBoss of America forecast to report a statutory profit of US$0.41 per share. Before this earnings report, the analysts had been forecasting revenues of US$441.2m and earnings per share (EPS) of US$0.41 in 2027. 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.
See our latest analysis for AirBoss of America
With the analysts reconfirming their revenue and earnings forecasts, it's surprising to see that the price target rose 11% to CA$10.60. It looks as though they previously had some doubts over whether the business would live up to their expectations.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the AirBoss of America's past performance and to peers in the same industry. For example, we noticed that AirBoss of America's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 4.3% growth to the end of 2027 on an annualised basis. That is well above its historical decline of 8.5% a year over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to decline 0.4% per year. So it's pretty clear that AirBoss of America is expected to grow faster than the wider industry.
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, they made no changes to their revenue estimates - and they expect it to perform better than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have analyst estimates for AirBoss of America going out as far as 2028, and you can see them free on our platform here.
That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 2 warning signs with AirBoss of America (at least 1 which can't be ignored) , and understanding them should be part of your investment process.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.