Modine Manufacturing Company Just Recorded A 7.6% EPS Beat: Here's What Analysts Are Forecasting Next

As you might know, Modine Manufacturing Company (NYSE:MOD) just kicked off its latest quarterly results with some very strong numbers. The company beat expectations with revenues of US$662m arriving 4.4% ahead of forecasts. Statutory earnings per share (EPS) were US$0.88, 7.6% ahead of estimates. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

View our latest analysis for Modine Manufacturing

Taking into account the latest results, the consensus forecast from Modine Manufacturing's six analysts is for revenues of US$2.61b in 2025. This reflects a credible 6.5% improvement in revenue compared to the last 12 months. Per-share earnings are expected to grow 14% to US$3.56. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$2.58b and earnings per share (EPS) of US$3.56 in 2025. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

With the analysts reconfirming their revenue and earnings forecasts, it's surprising to see that the price target rose 13% to US$132. It looks as though they previously had some doubts over whether the business would live up to their expectations. 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. The most optimistic Modine Manufacturing analyst has a price target of US$140 per share, while the most pessimistic values it at US$122. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

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 Modine Manufacturing's rate of growth is expected to accelerate meaningfully, with the forecast 8.7% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 5.2% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 10% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Modine Manufacturing is expected to grow at about the same rate as the wider industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

With that in mind, we wouldn't be too quick to come to a conclusion on Modine Manufacturing. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Modine Manufacturing going out to 2027, and you can see them free on our platform here..

We don't want to rain on the parade too much, but we did also find 2 warning signs for Modine Manufacturing that you need to be mindful of.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com