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Toromont Industries Ltd. (TSE:TIH) shareholders are probably feeling a little disappointed, since its shares fell 7.0% to CA$119 in the week after its latest third-quarter results. It was a pretty mixed result, with revenues beating expectations to hit CA$1.3b. Statutory earnings fell 5.9% short of analyst forecasts, reaching CA$1.59 per share. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
Check out our latest analysis for Toromont Industries
Taking into account the latest results, the most recent consensus for Toromont Industries from six analysts is for revenues of CA$5.11b in 2025. If met, it would imply a modest 3.3% increase on its revenue over the past 12 months. Per-share earnings are expected to increase 8.2% to CA$6.66. In the lead-up to this report, the analysts had been modelling revenues of CA$5.11b and earnings per share (EPS) of CA$6.81 in 2025. The analysts seem to have become a little more negative on the business after the latest results, given the small dip in their earnings per share numbers for next year.
The consensus price target held steady at CA$136, 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. Currently, the most bullish analyst values Toromont Industries at CA$150 per share, while the most bearish prices it at CA$128. 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.
Of course, another way to look at these forecasts is to place them into context against the industry itself. It's pretty clear that there is an expectation that Toromont Industries' revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 2.7% growth on an annualised basis. This is compared to a historical growth rate of 6.8% over the past five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 3.9% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Toromont Industries.