StandardAero, Inc. Just Recorded A 8.3% Revenue Beat: Here's What Analysts Think

StandardAero, Inc. (NYSE:SARO) defied analyst predictions to release its first-quarter results, which were ahead of market expectations. Results were good overall, with revenues beating analyst predictions by 8.3% to hit US$1.4b. Statutory earnings per share (EPS) came in at US$0.19, some 5.6% above whatthe analysts had expected. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

Our free stock report includes 1 warning sign investors should be aware of before investing in StandardAero. Read for free now.

Following the latest results, StandardAero's nine analysts are now forecasting revenues of US$5.93b in 2025. This would be a solid 9.1% improvement in revenue compared to the last 12 months. Per-share earnings are expected to bounce 297% to US$0.84. In the lead-up to this report, the analysts had been modelling revenues of US$5.89b and earnings per share (EPS) of US$0.86 in 2025. The analysts seem to have become a little more negative on the business after the latest results, given the small dip in their earnings per share numbers for next year.

See our latest analysis for StandardAero

The consensus price target held steady at US$33.89, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values StandardAero at US$39.00 per share, while the most bearish prices it at US$30.00. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting StandardAero is an easy business to forecast or the the analysts are all using similar assumptions.

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. We would highlight that StandardAero's revenue growth is expected to slow, with the forecast 12% annualised growth rate until the end of 2025 being well below the historical 17% growth over the last year. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 7.4% per year. Even after the forecast slowdown in growth, it seems obvious that StandardAero is also expected to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. 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. The consensus price target held steady at US$33.89, with the latest estimates not enough to have an impact on their price targets.

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 StandardAero going out to 2027, and you can see them free on our platform here..

It is also worth noting that we have found 1 warning sign for StandardAero that you need to take into consideration.

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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.