Carriage Services, Inc. (NYSE:CSV) missed earnings with its latest quarterly results, disappointing overly-optimistic forecasters. Carriage Services missed analyst forecasts, with revenues of US$103m and statutory earnings per share (EPS) of US$0.77, falling short by 5.5% and 6.1% respectively. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

Following the latest results, Carriage Services' four analysts are now forecasting revenues of US$435.9m in 2026. This would be a satisfactory 4.5% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to surge 22% to US$3.36. In the lead-up to this report, the analysts had been modelling revenues of US$442.9m and earnings per share (EPS) of US$3.44 in 2026. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a minor downgrade to their earnings per share forecasts.

The average price target fell 11% to US$53.60, with reduced earnings forecasts clearly tied to a lower valuation estimate. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on Carriage Services, with the most bullish analyst valuing it at US$65.00 and the most bearish at US$46.00 per share. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. It's clear from the latest estimates that Carriage Services' rate of growth is expected to accelerate meaningfully, with the forecast 9.1% annualised revenue growth to the end of 2026 noticeably faster than its historical growth of 2.9% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 6.9% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Carriage Services is expected to grow much faster than its industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Carriage Services. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Carriage Services' future valuation.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Carriage Services going out to 2028, and you can see them free on our platform here.

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.