Last week, you might have seen that CECO Environmental Corp. (NASDAQ:CECO) released its quarterly result to the market. The early response was not positive, with shares down 2.7% to US$29.20 in the past week. CECO Environmental missed revenue estimates by 4.0%, coming in atUS$138m, although statutory earnings per share (EPS) of US$0.12 beat expectations, coming in 2.9% ahead of analyst estimates. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

Taking into account the latest results, the most recent consensus for CECO Environmental from six analysts is for revenues of US$604.5m in 2024. If met, it would imply an okay 6.6% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to jump 69% to US$0.64. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$597.0m and earnings per share (EPS) of US$0.70 in 2024. 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.

Despite cutting their earnings forecasts,the analysts have lifted their price target 10% to US$32.00, suggesting that these impacts are not expected to weigh on the stock's value in the long term. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic CECO Environmental analyst has a price target of US$35.00 per share, while the most pessimistic values it at US$26.00. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

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 can infer from the latest estimates that forecasts expect a continuation of CECO Environmental'shistorical trends, as the 14% annualised revenue growth to the end of 2024 is roughly in line with the 12% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 6.6% annually. So although CECO Environmental is expected to maintain its revenue growth rate, it's definitely expected to grow faster 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. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster 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 in mind, we wouldn't be too quick to come to a conclusion on CECO Environmental. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for CECO Environmental going out to 2026, and you can see them free on our platform here..

Don't forget that there may still be risks. For instance, we've identified 2 warning signs for CECO Environmental that 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.

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