A week ago, EMCOR Group, Inc. (NYSE:EME) came out with a strong set of quarterly numbers that could potentially lead to a re-rate of the stock. It was overall a positive result, with revenues beating expectations by 2.2% to hit US$3.9b. EMCOR Group reported statutory earnings per share (EPS) US$5.26, which was a notable 15% above what the analysts had forecast. 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 gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
We've discovered 1 warning sign about EMCOR Group. View them for free.
Taking into account the latest results, the current consensus from EMCOR Group's six analysts is for revenues of US$16.5b in 2025. This would reflect a notable 9.7% increase on its revenue over the past 12 months. Statutory per-share earnings are expected to be US$23.41, roughly flat on the last 12 months. Before this earnings report, the analysts had been forecasting revenues of US$16.4b and earnings per share (EPS) of US$23.20 in 2025. 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.
See our latest analysis for EMCOR Group
It will come as no surprise then, to learn that the consensus price target is largely unchanged at US$485. 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 EMCOR Group at US$525 per share, while the most bearish prices it at US$384. This is a very narrow spread of estimates, implying either that EMCOR Group is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.
Of course, another way to look at these forecasts is to place them into context against the industry itself. We can infer from the latest estimates that forecasts expect a continuation of EMCOR Group'shistorical trends, as the 13% annualised revenue growth to the end of 2025 is roughly in line with the 11% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 7.5% per year. So it's pretty clear that EMCOR Group 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. 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$485, with the latest estimates not enough to have an impact on their price targets.
Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for EMCOR Group going out to 2027, and you can see them free on our platform here..
Before you take the next step you should know about the 1 warning sign for EMCOR Group that we have uncovered.
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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.