Columbus McKinnon Corporation Just Missed Earnings - But Analysts Have Updated Their Models

It's been a sad week for Columbus McKinnon Corporation (NASDAQ:CMCO), who've watched their investment drop 13% to US$39.10 in the week since the company reported its yearly result. It was not a great result overall. While revenues of US$1.0b were in line with analyst predictions, earnings were less than expected, missing statutory estimates by 12% to hit US$1.61 per share. 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 collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

View our latest analysis for Columbus McKinnon

Following the latest results, Columbus McKinnon's three analysts are now forecasting revenues of US$1.04b in 2025. This would be an okay 2.1% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to jump 44% to US$2.33. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$1.06b and earnings per share (EPS) of US$2.22 in 2025. So the consensus seems to have become somewhat more optimistic on Columbus McKinnon's earnings potential following these results.

There's been no major changes to the consensus price target of US$49.25, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. 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 Columbus McKinnon analyst has a price target of US$50.00 per share, while the most pessimistic values it at US$48.00. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Columbus McKinnon's past performance and to peers in the same industry. It's pretty clear that there is an expectation that Columbus McKinnon's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 2.1% growth on an annualised basis. This is compared to a historical growth rate of 5.2% 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 3.7% annually. Factoring in the forecast slowdown in growth, it seems obvious that Columbus McKinnon is also expected to grow slower than other industry participants.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Columbus McKinnon's earnings potential next year. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Columbus McKinnon's revenue is expected to perform worse than the wider industry. The consensus price target held steady at US$49.25, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates - from multiple Columbus McKinnon analysts - going out to 2026, 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 1 warning sign for Columbus McKinnon that you need to be mindful of.

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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.