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Investors in Toromont Industries Ltd. (TSE:TIH) had a good week, as its shares rose 5.3% to close at CA$123 following the release of its yearly results. Toromont Industries reported CA$5.0b in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of CA$6.13 beat expectations, being 2.7% higher than what the analysts expected. 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.
View our latest analysis for Toromont Industries
Following the latest results, Toromont Industries' nine analysts are now forecasting revenues of CA$5.19b in 2025. This would be a reasonable 3.3% improvement in revenue compared to the last 12 months. Per-share earnings are expected to expand 18% to CA$7.36. Yet prior to the latest earnings, the analysts had been anticipated revenues of CA$5.11b and earnings per share (EPS) of CA$6.39 in 2025. There was no real change to the revenue estimates, but the analysts do seem more bullish on earnings, given the nice gain to earnings per share expectations following these results.
There's been no major changes to the consensus price target of CA$137, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Toromont Industries, with the most bullish analyst valuing it at CA$150 and the most bearish at CA$130 per share. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.
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. 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 3.3% growth on an annualised basis. This is compared to a historical growth rate of 7.3% over the past five years. Compare this to the 16 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 3.4% per year. So it's pretty clear that, while Toromont Industries' revenue growth is expected to slow, it's expected to grow roughly in line with the industry.