nVent Electric plc Just Missed Revenue By 17%: Here's What Analysts Think Will Happen Next

The analysts might have been a bit too bullish on nVent Electric plc (NYSE:NVT), given that the company fell short of expectations when it released its third-quarter results last week. Earnings fell badly short of analyst estimates, with US$782m revenues missing by 17%, and statutory earnings per share (EPS) of US$0.62 falling short of forecasts by some -11%. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

See our latest analysis for nVent Electric

After the latest results, the consensus from nVent Electric's eight analysts is for revenues of US$3.30b in 2025, which would reflect a small 6.7% decline in revenue compared to the last year of performance. Statutory earnings per share are forecast to plunge 28% to US$2.53 in the same period. Before this earnings report, the analysts had been forecasting revenues of US$3.96b and earnings per share (EPS) of US$3.17 in 2025. Indeed, we can see that the analysts are a lot more bearish about nVent Electric's prospects following the latest results, administering a substantial drop in revenue estimates and slashing their EPS estimates to boot.

The analysts made no major changes to their price target of US$79.62, suggesting the downgrades are not expected to have a long-term impact on nVent Electric'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 nVent Electric analyst has a price target of US$91.62 per share, while the most pessimistic values it at US$60.00. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 5.4% by the end of 2025. This indicates a significant reduction from annual growth of 11% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 8.4% per year. It's pretty clear that nVent Electric's revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for nVent Electric. Unfortunately, they also downgraded their revenue estimates, and our data indicates underperformance compared to the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. 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.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for nVent Electric going out to 2026, 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 nVent Electric that we have uncovered.

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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.