The analysts might have been a bit too bullish on Hyster-Yale, Inc. (NYSE:HY), given that the company fell short of expectations when it released its third-quarter results last week. Results showed a clear earnings miss, with US$1.0b revenue coming in 3.8% lower than what the analystsexpected. Statutory earnings per share (EPS) of US$0.97 missed the mark badly, arriving some 51% below what was expected. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

See our latest analysis for Hyster-Yale

Taking into account the latest results, the current consensus, from the dual analysts covering Hyster-Yale, is for revenues of US$4.07b in 2025. This implies a small 4.6% reduction in Hyster-Yale's revenue over the past 12 months. Statutory earnings per share are forecast to tumble 40% to US$5.39 in the same period. Before this earnings report, the analysts had been forecasting revenues of US$4.32b and earnings per share (EPS) of US$6.91 in 2025. The analysts seem less optimistic after the recent results, reducing their revenue forecasts and making a large cut to earnings per share numbers.

The consensus price target fell 8.8% to US$72.50, with the weaker earnings outlook clearly leading valuation estimates.

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 revenue is expected to reverse, with a forecast 3.7% annualised decline to the end of 2025. That is a notable change from historical growth of 8.0% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 3.1% per year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Hyster-Yale is expected to lag the wider industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse than the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Hyster-Yale's future valuation.

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. We have analyst estimates for Hyster-Yale going out as far as 2026, and you can see them free on our platform here.

You should always think about risks though. Case in point, we've spotted 2 warning signs for Hyster-Yale you should be aware of, and 1 of them is a bit concerning.

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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.