Yahoo Finance ITT Inc. (NYSE:ITT) Second-Quarter Results: Here's What Analysts Are Forecasting For This Year
Last week, you might have seen that ITT Inc. (NYSE:ITT) released its quarterly result to the market. The early response was not positive, with shares down 7.8% to US$130 in the past week. Results were roughly in line with estimates, with revenues of US$906m and statutory earnings per share of US$1.45. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
See our latest analysis for ITT
Taking into account the latest results, the most recent consensus for ITT from eleven analysts is for revenues of US$3.60b in 2024. If met, it would imply a satisfactory 3.9% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to accumulate 8.0% to US$5.73. In the lead-up to this report, the analysts had been modelling revenues of US$3.65b and earnings per share (EPS) of US$5.75 in 2024. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.
The analysts reconfirmed their price target of US$157, showing that the business is executing well and in line with expectations. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values ITT at US$174 per share, while the most bearish prices it at US$150. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.
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. It's clear from the latest estimates that ITT's rate of growth is expected to accelerate meaningfully, with the forecast 8.0% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 5.1% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 3.2% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect ITT to grow faster than the wider industry.
The Bottom Line
The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at US$157, with the latest estimates not enough to have an impact on their price targets.
With that in mind, we wouldn't be too quick to come to a conclusion on ITT. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for ITT going out to 2026, and you can see them free on our platform here..
You can also see whether ITT is carrying too much debt, and whether its balance sheet is healthy, for free on our 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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
