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US$681: That's What Analysts Think Curtiss-Wright Corporation (NYSE:CW) Is Worth After Its Latest Results
Curtiss-Wright Corporation (NYSE:CW) shareholders are probably feeling a little disappointed, since its shares fell 2.6% to US$463 in the week after its latest third-quarter results. It was a credible result overall, with revenues of US$953m and statutory earnings per share of US$3.77 both in line with analyst estimates, showing that Curtiss-Wright is executing in line with expectations. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
Taking into account the latest results, the consensus forecast from Curtiss-Wright's nine analysts is for revenues of US$4.14b in 2027. This reflects a decent 11% improvement in revenue compared to the last 12 months. Per-share earnings are expected to expand 12% to US$17.19. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$4.11b and earnings per share (EPS) of US$17.19 in 2027. 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.
View our latest analysis for Curtiss-Wright
With no major changes to earnings forecasts, the consensus price target fell 8.3% to US$681, suggesting that the analysts might have previously been hoping for an earnings upgrade. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. Currently, the most bullish analyst values Curtiss-Wright at US$870 per share, while the most bearish prices it at US$518. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.
Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. The period to the end of 2027 brings more of the same, according to the analysts, with revenue forecast to display 8.5% growth on an annualised basis. That is in line with its 9.2% annual growth over the past five years. Juxtapose this against our data, which suggests that other companies (with analyst coverage) in the industry are forecast to see their revenues grow 9.3% per year. It's clear that while Curtiss-Wright's revenue growth is expected to continue on its current trajectory, it's only expected to grow in line with the industry itself.
The Bottom Line
The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.
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 Curtiss-Wright going out to 2028, and you can see them free on our platform here.
It might also be worth considering whether Curtiss-Wright's debt load is appropriate, using our debt analysis tools on the Simply Wall St platform, here.
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