The Carpenter Technology Corporation (NYSE:CRS) Full-Year Results Are Out And Analysts Have Published New Forecasts

Last week, you might have seen that Carpenter Technology Corporation (NYSE:CRS) released its full-year result to the market. The early response was not positive, with shares down 3.2% to US$246 in the past week. Carpenter Technology reported US$2.9b in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of US$7.42 beat expectations, being 2.2% higher than what the analysts 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

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Taking into account the latest results, the consensus forecast from Carpenter Technology's seven analysts is for revenues of US$3.13b in 2026. This reflects a meaningful 8.8% improvement in revenue compared to the last 12 months. Per-share earnings are expected to jump 29% to US$9.70. In the lead-up to this report, the analysts had been modelling revenues of US$3.13b and earnings per share (EPS) of US$9.29 in 2026. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

See our latest analysis for Carpenter Technology

There's been no major changes to the consensus price target of US$321, 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 Carpenter Technology analyst has a price target of US$375 per share, while the most pessimistic values it at US$300. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business 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. It's pretty clear that there is an expectation that Carpenter Technology's revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 8.8% growth on an annualised basis. This is compared to a historical growth rate of 13% over the past five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 5.4% per year. So it's pretty clear that, while Carpenter Technology's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Carpenter Technology's earnings potential next year. 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$321, with the latest estimates not enough to have an impact on their price targets.

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 Carpenter Technology going out to 2028, and you can see them free on our platform here..

And what about risks? Every company has them, and we've spotted 1 warning sign for Carpenter Technology 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.