Carlisle Companies Incorporated (NYSE:CSL (OTC:CSLLY)) is facing a significant downgrade in its forecast for this year, according to consensus among five analysts. The revised prediction suggests an 18% reduction in sales compared to the previous year, with revenues anticipated to reach $4.9 billion in 2023. In addition, statutory earnings per share (EPS) are projected to decline by 7.1% to $14.47.
This represents a notable shift in sentiment for the company, as previous expectations projected revenues of $5.5 billion and an EPS of $14.86 in 2023. The company's sales growth is expected to decelerate, with an annual revenue decline of 33% by 2023 projected. This contrasts sharply with the 8.0% annual growth that Carlisle Companies experienced over the last five years. This is in line with the InvestingPro data, which shows a -14.03% quarterly revenue growth for FY2023.Q2.
Further exacerbating the company's challenges, Carlisle Companies is predicted to underperform compared to the broader industry, which is forecasted to grow at an annual rate of 4.2%. This downgrade in expectations, coupled with high debt levels and balance sheet concerns, could signal an impending downturn for the business. Yet, it's worth noting that according to InvestingPro data, the company operates with a moderate level of debt and its liquid assets exceed short-term obligations, which may provide some financial stability in the face of these challenges.
Analysts have also reduced their EPS estimates for Carlisle Companies, adding another layer of concern for investors. In fact, four analysts have revised their earnings downwards for the upcoming period, as per InvestingPro Tips. Additionally, open market stock trades and the trading activities of the company's management and directors are being closely watched as potential indicators of future performance.
Investors are advised to exercise caution given these developments, as they may significantly influence the company's future performance and stock valuation. Yet, it's important to highlight that the company has a history of yielding high returns on invested capital and has raised its dividend for 30 consecutive years, according to InvestingPro Tips. This track record might offer some reassurance to investors despite the current challenges. For more insights like these, consider accessing the additional 12 tips available on InvestingPro.
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