Analysts Are Updating Their Hyster-Yale, Inc. (NYSE:HY) Estimates After Its Third-Quarter Results
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 quarterly results last week. Unfortunately, Hyster-Yale delivered a serious earnings miss. Revenues of US$827m were 11% below expectations, and statutory losses ballooned 41% to US$0.83 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 thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
Following the latest results, Hyster-Yale's twin analysts are now forecasting revenues of US$3.73b in 2027. This would be a notable 11% improvement in revenue compared to the last 12 months. Earnings are expected to improve, with Hyster-Yale forecast to report a statutory profit of US$1.47 per share. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$3.76b and earnings per share (EPS) of US$1.51 in 2027. 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.
View our latest analysis for Hyster-Yale
It might be a surprise to learn that the consensus price target was broadly unchanged at US$50.00, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation.
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. It's clear from the latest estimates that Hyster-Yale's rate of growth is expected to accelerate meaningfully, with the forecast 8.8% annualised revenue growth to the end of 2027 noticeably faster than its historical growth of 3.3% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 6.7% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Hyster-Yale is expected to grow much faster than its industry.
The Bottom Line
The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Hyster-Yale. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at US$50.00, with the latest estimates not enough to have an impact on their price targets.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have analyst estimates for Hyster-Yale going out as far as 2027, and you can see them free on our platform here.
Before you take the next step you should know about the 2 warning signs for Hyster-Yale that we have uncovered.
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