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Toromont Industries Ltd. (TSE:TIH) shareholders are probably feeling a little disappointed, since its shares fell 3.8% to CA$111 in the week after its latest quarterly results. It was not a great result overall. While revenues of CA$1.1b were in line with analyst predictions, earnings were less than expected, missing statutory estimates by 13% to hit CA$0.91 per share. 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.
Following last week's earnings report, Toromont Industries' eight analysts are forecasting 2025 revenues to be CA$5.16b, approximately in line with the last 12 months. Statutory earnings per share are forecast to shrink 4.5% to CA$5.84 in the same period. Before this earnings report, the analysts had been forecasting revenues of CA$5.18b and earnings per share (EPS) of CA$6.42 in 2025. 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.
Check out our latest analysis for Toromont Industries
The consensus price target held steady at CA$133, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Toromont Industries at CA$146 per share, while the most bearish prices it at CA$130. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Toromont Industries is an easy business to forecast or the the analysts are all using similar assumptions.
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 Toromont Industries' revenue growth is expected to slow, with the forecast 1.8% annualised growth rate until the end of 2025 being well below the historical 7.8% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 2.9% annually. Factoring in the forecast slowdown in growth, it seems obvious that Toromont Industries is also expected to grow slower than other industry participants.