US$59.00 - That's What Analysts Think Carriage Services, Inc. (NYSE:CSV) Is Worth After These Results

It's been a good week for Carriage Services, Inc. (NYSE:CSV) shareholders, because the company has just released its latest second-quarter results, and the shares gained 6.5% to US$48.16. Results were roughly in line with estimates, with revenues of US$102m and statutory earnings per share of US$0.74. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

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Following last week's earnings report, Carriage Services' three analysts are forecasting 2025 revenues to be US$410.0m, approximately in line with the last 12 months. Per-share earnings are expected to rise 9.0% to US$3.61. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$407.5m and earnings per share (EPS) of US$3.62 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.

See our latest analysis for Carriage Services

The consensus price target rose 11% to US$59.00despite there being no meaningful change to earnings estimates. It could be that the analystsare reflecting the predictability of Carriage Services' earnings by assigning a price premium. 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. The most optimistic Carriage Services analyst has a price target of US$65.00 per share, while the most pessimistic values it at US$55.00. 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.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We would highlight that Carriage Services' revenue growth is expected to slow, with the forecast 1.2% annualised growth rate until the end of 2025 being well below the historical 4.7% 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 9.8% 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 Carriage Services.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Carriage Services' 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 Carriage Services. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Carriage Services analysts - going out to 2026, and you can see them free on our platform here.

And what about risks? Every company has them, and we've spotted 1 warning sign for Carriage Services you should know about.

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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.