Solventum Corporation Beat Analyst Estimates: See What The Consensus Is Forecasting For This Year

A week ago, Solventum Corporation (NYSE:SOLV) came out with a strong set of quarterly numbers that could potentially lead to a re-rate of the stock. The company beat expectations with revenues of US$2.1b arriving 2.7% ahead of forecasts. Statutory earnings per share (EPS) were US$0.78, 7.6% ahead of estimates. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

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Following last week's earnings report, Solventum's ten analysts are forecasting 2025 revenues to be US$8.43b, approximately in line with the last 12 months. Statutory earnings per share are predicted to bounce 69% to US$3.70. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$8.27b and earnings per share (EPS) of US$3.62 in 2025. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

Check out our latest analysis for Solventum

There's been no major changes to the consensus price target of US$80.14, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. 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 Solventum analyst has a price target of US$88.00 per share, while the most pessimistic values it at US$71.00. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. The analysts are definitely expecting Solventum's growth to accelerate, with the forecast 1.9% annualised growth to the end of 2025 ranking favourably alongside historical growth of 1.3% per annum over the past year. Compare this with other companies in the same industry, which are forecast to see revenue growth of 8.2% annually. It seems obvious that, while the future growth outlook is brighter than the recent past, Solventum is expected to grow slower than the wider industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Solventum's earnings potential next year. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse 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 Solventum going out to 2027, and you can see them free on our platform here..

And what about risks? Every company has them, and we've spotted 3 warning signs for Solventum (of which 1 is a bit unpleasant!) you should know about.

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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.