Toromont Industries Ltd. (TSE:TIH) just released its quarterly report and things are looking bullish. Toromont Industries beat expectations, with revenue hitting CA$1.4b (14% ahead of estimates) and EPS reaching CA$1.64 (a 2.5% beat). 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've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

View our latest analysis for Toromont Industries

Taking into account the latest results, the consensus forecast from Toromont Industries' nine analysts is for revenues of CA$4.92b in 2024. This reflects a satisfactory 2.9% improvement in revenue compared to the last 12 months. Per-share earnings are expected to rise 2.1% to CA$6.47. In the lead-up to this report, the analysts had been modelling revenues of CA$4.75b and earnings per share (EPS) of CA$6.49 in 2024. So it looks like there's been no major change in sentiment following the latest results, although the analysts have made a slight bump in to revenue forecasts.

Even though revenue forecasts increased, there was no change to the consensus price target of CA$137, suggesting the analysts are focused on earnings as the driver of value creation. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Toromont Industries, with the most bullish analyst valuing it at CA$145 and the most bearish at CA$128 per share. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

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 can infer from the latest estimates that forecasts expect a continuation of Toromont Industries'historical trends, as the 5.9% annualised revenue growth to the end of 2024 is roughly in line with the 6.3% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 3.1% annually. So it's pretty clear that Toromont Industries is forecast to grow substantially faster than its industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Happily, they also upgraded their revenue estimates, and are forecasting them to grow faster than the wider industry. The consensus price target held steady at CA$137, with the latest estimates not enough to have an impact on their price targets.