Investors in Canadian Tire Corporation, Limited (TSE:CTC.A) had a good week, as its shares rose 6.5% to close at CA$150 following the release of its quarterly results. Revenues were CA$4.1b, approximately in line with whatthe analysts expected, although statutory earnings per share (EPS) crushed expectations, coming in at CA$3.56, an impressive 50% ahead of estimates. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

View our latest analysis for Canadian Tire Corporation

Following last week's earnings report, Canadian Tire Corporation's nine analysts are forecasting 2024 revenues to be CA$16.5b, approximately in line with the last 12 months. Statutory earnings per share are predicted to leap 76% to CA$12.05. In the lead-up to this report, the analysts had been modelling revenues of CA$16.6b and earnings per share (EPS) of CA$11.02 in 2024. So the consensus seems to have become somewhat more optimistic on Canadian Tire Corporation's earnings potential following these results.

There's been no major changes to the consensus price target of CA$154, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. 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. Currently, the most bullish analyst values Canadian Tire Corporation at CA$190 per share, while the most bearish prices it at CA$121. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Canadian Tire Corporation shareholders.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Canadian Tire Corporation's past performance and to peers in the same industry. We would highlight that Canadian Tire Corporation's revenue growth is expected to slow, with the forecast 1.5% annualised growth rate until the end of 2024 being well below the historical 4.5% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 10% 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 Canadian Tire Corporation.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Canadian Tire Corporation following these results. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target held steady at CA$154, with the latest estimates not enough to have an impact on their price targets.

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 Canadian Tire Corporation going out to 2026, and you can see them free on our platform here..

And what about risks? Every company has them, and we've spotted 3 warning signs for Canadian Tire Corporation (of which 1 is a bit unpleasant!) you should know about.

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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.