Shareholders of ITT Inc. (NYSE:ITT) will be pleased this week, given that the stock price is up 13% to US$207 following its latest yearly results. It looks like the results were a bit of a negative overall. While revenues of US$3.9b were in line with analyst predictions, statutory earnings were less than expected, missing estimates by 3.7% to hit US$6.11 per share. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on ITT after the latest results.

Taking into account the latest results, the consensus forecast from ITT's eleven analysts is for revenues of US$4.18b in 2026. This reflects a modest 6.1% improvement in revenue compared to the last 12 months. Per-share earnings are expected to soar 25% to US$7.13. Before this earnings report, the analysts had been forecasting revenues of US$4.12b and earnings per share (EPS) of US$7.16 in 2026. 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.

The consensus price target rose 6.1% to US$224despite there being no meaningful change to earnings estimates. It could be that the analystsare reflecting the predictability of ITT's earnings by assigning a price premium. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on ITT, with the most bullish analyst valuing it at US$255 and the most bearish at US$175 per share. 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. We would highlight that ITT's revenue growth is expected to slow, with the forecast 6.1% annualised growth rate until the end of 2026 being well below the historical 8.9% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 6.0% annually. Factoring in the forecast slowdown in growth, it looks like ITT is forecast to grow at about the same rate as the wider industry.

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. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

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 forecasts for ITT going out to 2028, and you can see them free on our platform here.

We also provide an overview of the ITT Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, here.

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.