Enpro Inc. Just Beat Earnings Expectations: Here's What Analysts Think Will Happen Next

Enpro Inc. (NYSE:NPO) investors will be delighted, with the company turning in some strong numbers with its latest results. It was overall a positive result, with revenues beating expectations by 2.6% to hit US$273m. Enpro reported statutory earnings per share (EPS) US$1.15, which was a notable 19% above what the analysts had forecast. 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.

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Taking into account the latest results, the consensus forecast from Enpro's three analysts is for revenues of US$1.09b in 2025. This reflects a satisfactory 2.4% improvement in revenue compared to the last 12 months. Per-share earnings are expected to grow 10% to US$4.45. In the lead-up to this report, the analysts had been modelling revenues of US$1.09b and earnings per share (EPS) of US$4.46 in 2025. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

View our latest analysis for Enpro

It will come as no surprise then, to learn that the consensus price target is largely unchanged at US$212. 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. The most optimistic Enpro analyst has a price target of US$232 per share, while the most pessimistic values it at US$190. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Enpro is an easy business to forecast or the the analysts are all using similar assumptions.

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 Enpro's rate of growth is expected to accelerate meaningfully, with the forecast 3.2% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 1.0% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 3.7% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Enpro 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 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.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for Enpro going out to 2026, and you can see them free on our platform here..

You can also see whether Enpro is carrying too much debt, and whether its balance sheet is healthy, 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.