Garrett Motion Inc. (NASDAQ:GTX) just released its latest quarterly report and things are not looking great. Garrett Motion missed earnings this time around, with US$826m revenue coming in 2.9% below what the analysts had modelled. Statutory earnings per share (EPS) of US$0.24 also fell short of expectations by 19%. 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 collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

See our latest analysis for Garrett Motion

Following the latest results, Garrett Motion's dual analysts are now forecasting revenues of US$3.68b in 2025. This would be a modest 2.9% improvement in revenue compared to the last 12 months. Per-share earnings are expected to climb 18% to US$1.29. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$3.72b and earnings per share (EPS) of US$1.32 in 2025. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

The analysts reconfirmed their price target of US$12.00, showing that the business is executing well and in line with expectations.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. It's pretty clear that there is an expectation that Garrett Motion's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 2.3% growth on an annualised basis. This is compared to a historical growth rate of 4.6% 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 9.2% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Garrett Motion.

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. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Garrett Motion's revenue is expected to perform worse than the wider industry. The consensus price target held steady at US$12.00, with the latest estimates not enough to have an impact on their price targets.

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 analyst estimates for Garrett Motion going out as far as 2025, and you can see them free on our platform here.

Before you take the next step you should know about the 2 warning signs for Garrett Motion 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.