Cascades Inc. (TSE:CAS) shareholders are probably feeling a little disappointed, since its shares fell 6.4% to CA$8.91 in the week after its latest quarterly results. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

View our latest analysis for Cascades

Following last week's earnings report, Cascades' five analysts are forecasting 2024 revenues to be CA$4.69b, approximately in line with the last 12 months. Earnings are expected to improve, with Cascades forecast to report a statutory profit of CA$0.25 per share. Yet prior to the latest earnings, the analysts had been anticipated revenues of CA$4.65b and earnings per share (EPS) of CA$1.55 in 2024. The analysts seem to have become more bearish following the latest results. While there were no changes to revenue forecasts, there was a pretty serious reduction to EPS estimates.

It might be a surprise to learn that the consensus price target was broadly unchanged at CA$11.00, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic Cascades analyst has a price target of CA$12.50 per share, while the most pessimistic values it at CA$10.00. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. For example, we noticed that Cascades' rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 2.7% growth to the end of 2024 on an annualised basis. That is well above its historical decline of 0.6% a year over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 3.7% annually for the foreseeable future. Although Cascades' revenues are expected to improve, it seems that the analysts are still bearish on the business, forecasting it to grow slower than the broader industry.