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The analysts might have been a bit too bullish on Hyster-Yale, Inc. (NYSE:HY), given that the company fell short of expectations when it released its third-quarter results last week. Results showed a clear earnings miss, with US$1.0b revenue coming in 3.8% lower than what the analystsexpected. Statutory earnings per share (EPS) of US$0.97 missed the mark badly, arriving some 51% below what was expected. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
See our latest analysis for Hyster-Yale
Taking into account the latest results, the current consensus, from the dual analysts covering Hyster-Yale, is for revenues of US$4.07b in 2025. This implies a small 4.6% reduction in Hyster-Yale's revenue over the past 12 months. Statutory earnings per share are forecast to tumble 40% to US$5.39 in the same period. Before this earnings report, the analysts had been forecasting revenues of US$4.32b and earnings per share (EPS) of US$6.91 in 2025. The analysts seem less optimistic after the recent results, reducing their revenue forecasts and making a large cut to earnings per share numbers.
The consensus price target fell 8.8% to US$72.50, with the weaker earnings outlook clearly leading valuation estimates.
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. We would highlight that revenue is expected to reverse, with a forecast 3.7% annualised decline to the end of 2025. That is a notable change from historical growth of 8.0% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 3.1% per year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Hyster-Yale is expected to lag 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. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse 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 Hyster-Yale's future valuation.