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Shareholders might have noticed that Reliance, Inc. (NYSE:RS) filed its quarterly result this time last week. The early response was not positive, with shares down 4.5% to US$284 in the past week. It was a credible result overall, with revenues of US$3.4b and statutory earnings per share of US$3.61 both in line with analyst estimates, showing that Reliance is executing in line with expectations. 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 thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
View our latest analysis for Reliance
Taking into account the latest results, Reliance's seven analysts currently expect revenues in 2025 to be US$14.0b, approximately in line with the last 12 months. Statutory earnings per share are expected to drop 10% to US$17.31 in the same period. In the lead-up to this report, the analysts had been modelling revenues of US$14.2b and earnings per share (EPS) of US$18.11 in 2025. The analysts seem to have become a little more negative on the business after the latest results, given the minor downgrade to their earnings per share numbers for next year.
The consensus price target held steady at US$319, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. 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. There are some variant perceptions on Reliance, with the most bullish analyst valuing it at US$340 and the most bearish at US$260 per share. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.
One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 0.2% by the end of 2025. This indicates a significant reduction from annual growth of 10% 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 5.5% per year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Reliance is expected to lag the wider industry.