Results: ITT Inc. Exceeded Expectations And The Consensus Has Updated Its Estimates

Shareholders might have noticed that ITT Inc. (NYSE:ITT) filed its quarterly result this time last week. The early response was not positive, with shares down 2.5% to US$140 in the past week. It looks like a credible result overall - although revenues of US$885m were what the analysts expected, ITT surprised by delivering a (statutory) profit of US$1.96 per share, an impressive 39% above what was forecast. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

View our latest analysis for ITT

Taking into account the latest results, the most recent consensus for ITT from eleven analysts is for revenues of US$3.90b in 2025. If met, it would imply a notable 10% increase on its revenue over the past 12 months. Per-share earnings are expected to accumulate 8.7% to US$6.45. In the lead-up to this report, the analysts had been modelling revenues of US$3.86b and earnings per share (EPS) of US$6.45 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.

There were no changes to revenue or earnings estimates or the price target of US$164, suggesting that the company has met expectations in its recent result. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values ITT at US$176 per share, while the most bearish prices it at US$150. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. The analysts are definitely expecting ITT's growth to accelerate, with the forecast 8.2% annualised growth to the end of 2025 ranking favourably alongside historical growth of 5.9% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 3.0% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that ITT is expected to grow much faster than its industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for ITT going out to 2026, and you can see them free on our platform here..

You can also view our analysis of ITT's balance sheet, and whether we think ITT is carrying too much debt, for free on our platform here.

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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.