A week ago, CCL Industries Inc. (TSE:CCL.B) came out with a strong set of quarterly numbers that could potentially lead to a re-rate of the stock. The company beat expectations with revenues of CA$1.9b arriving 2.0% ahead of forecasts. Statutory earnings per share (EPS) were CA$1.17, 9.4% ahead of estimates. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

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Taking into account the latest results, the current consensus from CCL Industries' nine analysts is for revenues of CA$7.60b in 2025. This would reflect a credible 2.8% increase on its revenue over the past 12 months. Statutory earnings per share are forecast to dip 7.0% to CA$4.55 in the same period. Before this earnings report, the analysts had been forecasting revenues of CA$7.57b and earnings per share (EPS) of CA$4.59 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.

Check out our latest analysis for CCL Industries

The analysts reconfirmed their price target of CA$90.50, showing that the business is executing well and in line with expectations. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic CCL Industries analyst has a price target of CA$95.00 per share, while the most pessimistic values it at CA$88.00. This is a very narrow spread of estimates, implying either that CCL Industries is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the CCL Industries' past performance and to peers in the same industry. We would highlight that CCL Industries' revenue growth is expected to slow, with the forecast 3.7% annualised growth rate until the end of 2025 being well below the historical 7.5% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 3.3% annually. Factoring in the forecast slowdown in growth, it looks like CCL Industries is forecast to grow at about the same rate as the wider industry.

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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. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. The consensus price target held steady at CA$90.50, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for CCL Industries going out to 2026, and you can see them free on our platform here.

You can also view our analysis of CCL Industries' balance sheet, and whether we think CCL Industries is carrying too much debt, for free  on our 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.

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