It's been a good week for Mettler-Toledo International Inc. (NYSE:MTD) shareholders, because the company has just released its latest first-quarter results, and the shares gained 3.6% to US$1,100. The result was positive overall - although revenues of US$884m were in line with what the analysts predicted, Mettler-Toledo International surprised by delivering a statutory profit of US$7.81 per share, modestly greater than expected. 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.
Following the latest results, Mettler-Toledo International's 13 analysts are now forecasting revenues of US$3.92b in 2025. This would be a modest 2.4% improvement in revenue compared to the last 12 months. Statutory per-share earnings are expected to be US$40.54, roughly flat on the last 12 months. In the lead-up to this report, the analysts had been modelling revenues of US$3.92b and earnings per share (EPS) of US$41.41 in 2025. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a minor downgrade to their earnings per share forecasts.
View our latest analysis for Mettler-Toledo International
It might be a surprise to learn that the consensus price target was broadly unchanged at US$1,265, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. 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 Mettler-Toledo International analyst has a price target of US$1,530 per share, while the most pessimistic values it at US$1,110. 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. It's pretty clear that there is an expectation that Mettler-Toledo International's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 3.2% growth on an annualised basis. This is compared to a historical growth rate of 5.0% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 6.0% per year. Factoring in the forecast slowdown in growth, it seems obvious that Mettler-Toledo International is also expected to grow slower than other industry participants.
The Bottom Line
The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Mettler-Toledo International. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Mettler-Toledo International's revenue is expected to perform worse than the wider industry. The consensus price target held steady at US$1,265, with the latest estimates not enough to have an impact on their price targets.
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 Mettler-Toledo International going out to 2027, and you can see them free on our platform here..
Don't forget that there may still be risks. For instance, we've identified 2 warning signs for Mettler-Toledo International that you should be aware of.
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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.