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Today is shaping up negative for Century Communities, Inc. (NYSE:CCS) shareholders, with the analysts delivering a substantial negative revision to this year's forecasts. Both revenue and earnings per share (EPS) forecasts went under the knife, suggesting the analysts have soured majorly on the business.
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Following the latest downgrade, the three analysts covering Century Communities provided consensus estimates of US$4.1b revenue in 2025, which would reflect a discernible 6.5% decline on its sales over the past 12 months. Statutory earnings per share are supposed to plunge 36% to US$6.49 in the same period. Before this latest update, the analysts had been forecasting revenues of US$4.6b and earnings per share (EPS) of US$9.33 in 2025. It looks like analyst sentiment has declined substantially, with a measurable cut to revenue estimates and a pretty serious decline to earnings per share numbers as well.
See our latest analysis for Century Communities
Analysts made no major changes to their price target of US$86.00, suggesting the downgrades are not expected to have a long-term impact on Century Communities' valuation.
Of course, another way to look at these forecasts is to place them into context against the industry itself. These estimates imply that sales are expected to slow, with a forecast annualised revenue decline of 8.6% by the end of 2025. This indicates a significant reduction from annual growth of 6.5% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 4.4% per year. It's pretty clear that Century Communities' revenues are expected to perform substantially worse than the wider industry.
The Bottom Line
The most important thing to take away is that analysts cut their earnings per share estimates, expecting a clear decline in business conditions. Unfortunately analysts also downgraded their revenue estimates, and industry data suggests that Century Communities' revenues are expected to grow slower than the wider market. We're also surprised to see that the price target went unchanged. Still, deteriorating business conditions (assuming accurate forecasts!) can be a leading indicator for the stock price, so we wouldn't blame investors for being more cautious on Century Communities after the downgrade.
Still, the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Century Communities analysts - going out to 2026, and you can see them free on our platform here.