Installed Building Products, Inc. Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now

It's been a good week for Installed Building Products, Inc. (NYSE:IBP) shareholders, because the company has just released its latest quarterly results, and the shares gained 3.1% to US$220. Installed Building Products beat revenue expectations by 2.6%, at US$808m. Statutory earnings per share (EPS) came in at US$2.24, some 9.3% short of analyst estimates. 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.

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Following last week's earnings report, Installed Building Products' 15 analysts are forecasting 2027 revenues to be US$3.03b, approximately in line with the last 12 months. Statutory per-share earnings are expected to be US$8.94, roughly flat on the last 12 months. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$3.05b and earnings per share (EPS) of US$9.57 in 2027. 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.

Check out our latest analysis for Installed Building Products

It might be a surprise to learn that the consensus price target was broadly unchanged at US$216, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. 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. There are some variant perceptions on Installed Building Products, with the most bullish analyst valuing it at US$261 and the most bearish at US$180 per share. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. It's pretty clear that there is an expectation that Installed Building Products' revenue growth will slow down substantially, with revenues to the end of 2027 expected to display 1.0% growth on an annualised basis. This is compared to a historical growth rate of 7.2% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 6.0% 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 Installed Building Products.

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 Installed Building Products' revenue is expected to perform worse than the wider industry. The consensus price target held steady at US$216, 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 Installed Building Products. 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 Installed Building Products going out to 2028, and you can see them free on our platform here..

However, before you get too enthused, we've discovered 1 warning sign for Installed Building Products that you should be aware of.

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