Shareholders might have noticed that Legacy Housing Corporation (NASDAQ:LEGH) filed its quarterly result this time last week. The early response was not positive, with shares down 5.0% to US$25.90 in the past week. Legacy Housing missed revenue estimates by 7.8%, coming in atUS$44m, although statutory earnings per share (EPS) of US$0.64 beat expectations, coming in 6.2% ahead of analyst estimates. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Legacy Housing after the latest results.

Check out our latest analysis for Legacy Housing

Taking into account the latest results, the most recent consensus for Legacy Housing from three analysts is for revenues of US$189.8m in 2025. If met, it would imply a notable 16% increase on its revenue over the past 12 months. Per-share earnings are expected to ascend 12% to US$2.51. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$198.5m and earnings per share (EPS) of US$2.59 in 2025. The analysts are less bullish than they were before these results, given the reduced revenue forecasts and the small dip in earnings per share expectations.

Despite the cuts to forecast earnings, there was no real change to the US$31.50 price target, showing that the analysts don't think the changes have a meaningful impact on its intrinsic value. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Legacy Housing analyst has a price target of US$34.00 per share, while the most pessimistic values it at US$29.00. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Legacy Housing is an easy business to forecast or the the analysts are all using similar assumptions.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. The analysts are definitely expecting Legacy Housing's growth to accelerate, with the forecast 13% annualised growth to the end of 2025 ranking favourably alongside historical growth of 4.1% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 5.8% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Legacy Housing to grow faster than the wider 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. Regrettably, they also downgraded their revenue estimates, but the latest forecasts still imply the business will grow faster than the wider industry. The consensus price target held steady at US$31.50, 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 estimates - from multiple Legacy Housing analysts - going out to 2026, and you can see them free on our platform here.

It might also be worth considering whether Legacy Housing's 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.