It's been a pretty great week for LSB Industries, Inc. (NYSE:LXU) shareholders, with its shares surging 17% to US$6.60 in the week since its latest quarterly results. The results don't look great, especially considering that the analysts had been forecasting a profit and LSB Industries delivered a statutory loss of US$0.02 per share. Revenues of US$143m did beat expectations by 3.8% though. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
After the latest results, the five analysts covering LSB Industries are now predicting revenues of US$578.4m in 2025. If met, this would reflect a decent 9.6% improvement in revenue compared to the last 12 months. Earnings are expected to improve, with LSB Industries forecast to report a statutory profit of US$0.21 per share. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$561.6m and earnings per share (EPS) of US$0.29 in 2025. While next year's revenue estimates increased, there was also a large cut to EPS expectations, suggesting the consensus has a bit of a mixed view of these results.
View our latest analysis for LSB Industries
The analysts also cut LSB Industries' price target 6.6% to US$9.65, implying that lower forecast earnings are expected to have a more negative impact than can be offset by the increase in revenue. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on LSB Industries, with the most bullish analyst valuing it at US$15.00 and the most bearish at US$6.90 per share. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the LSB Industries' past performance and to peers in the same industry. The analysts are definitely expecting LSB Industries' growth to accelerate, with the forecast 13% annualised growth to the end of 2025 ranking favourably alongside historical growth of 9.4% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 4.1% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that LSB Industries is expected to grow much faster than its 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, they also upgraded their revenue estimates, and are forecasting them to grow faster than the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of LSB Industries' future valuation.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for LSB Industries going out to 2027, and you can see them free on our platform here..
It might also be worth considering whether LSB Industries' debt load is appropriate, using our debt analysis tools on the Simply Wall St platform, here.
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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.