Shareholders might have noticed that Ingersoll Rand Inc. (NYSE:IR) filed its full-year result this time last week. The early response was not positive, with shares down 5.8% to US$85.72 in the past week. It looks like the results were a bit of a negative overall. While revenues of US$7.2b were in line with analyst predictions, statutory earnings were less than expected, missing estimates by 3.9% to hit US$2.06 per share. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

View our latest analysis for Ingersoll Rand

Taking into account the latest results, the current consensus from Ingersoll Rand's 15 analysts is for revenues of US$7.57b in 2025. This would reflect a credible 4.6% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to shoot up 30% to US$2.70. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$7.58b and earnings per share (EPS) of US$2.63 in 2025. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

The consensus price target was unchanged at US$103, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values Ingersoll Rand at US$119 per share, while the most bearish prices it at US$82.17. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We would highlight that Ingersoll Rand's revenue growth is expected to slow, with the forecast 4.6% annualised growth rate until the end of 2025 being well below the historical 19% p.a. growth over the last five years. Compare this to the 183 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 4.5% per year. Factoring in the forecast slowdown in growth, it looks like Ingersoll Rand is forecast to grow at about the same rate as the wider industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Ingersoll Rand following these results. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall 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. We have forecasts for Ingersoll Rand going out to 2027, and you can see them free on our platform here.

You can also view our analysis of Ingersoll Rand's balance sheet, and whether we think Ingersoll Rand is carrying too much debt, for free on our platform here.

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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.