Investors in Crane Holdings, Co. (NYSE:CR) had a good week, as its shares rose 9.5% to close at US$116 following the release of its full-year results. The result was positive overall - although revenues of US$3.4b were in line with what the analysts predicted, Crane Holdings surprised by delivering a statutory profit of US$7.18 per share, modestly greater than 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Crane Holdings after the latest results.
See our latest analysis for Crane Holdings
Following last week's earnings report, Crane Holdings' seven analysts are forecasting 2023 revenues to be US$3.40b, approximately in line with the last 12 months. Per-share earnings are expected to rise 9.8% to US$8.03. Before this earnings report, the analysts had been forecasting revenues of US$3.45b and earnings per share (EPS) of US$8.13 in 2023. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.
The analysts reconfirmed their price target of US$131, showing that the business is executing well and in line with expectations. 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. The most optimistic Crane Holdings analyst has a price target of US$140 per share, while the most pessimistic values it at US$121. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business 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 Crane Holdings'historical trends, as the 0.8% annualised revenue growth to the end of 2023 is roughly in line with the 0.7% annual revenue growth over the past five years. Compare this with the broader industry (in aggregate), which analyst estimates suggest will see revenues grow 4.9% annually. So although Crane Holdings is expected to maintain its revenue growth rate, it's forecast to grow slower than the wider 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. On the plus side, there were no major changes to revenue estimates; although forecasts imply revenues 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.
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 Crane Holdings going out to 2025, and you can see them free on our platform here..
You should always think about risks though. Case in point, we've spotted 3 warning signs for Crane Holdings you should be aware of, and 1 of them is concerning.
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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.