It's been a good week for PHINIA Inc. (NYSE:PHIN) shareholders, because the company has just released its latest annual results, and the shares gained 3.6% to US$51.74. Statutory earnings per share fell badly short of expectations, coming in at US$1.76, some 29% below analyst forecasts, although revenues were okay, approximately in line with analyst estimates at US$3.4b. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

Taking into account the latest results, PHINIA's four analysts currently expect revenues in 2025 to be US$3.35b, approximately in line with the last 12 months. Statutory earnings per share are predicted to leap 101% to US$3.89. Before this earnings report, the analysts had been forecasting revenues of US$3.36b and earnings per share (EPS) of US$4.62 in 2025. The analysts seem to have become more bearish following the latest results. While there were no changes to revenue forecasts, there was a real cut to EPS estimates.

The consensus price target held steady at US$57.00, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. 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. Currently, the most bullish analyst values PHINIA at US$63.00 per share, while the most bearish prices it at US$50.00. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

Of course, another way to look at these forecasts is to place them into context against the industry itself. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 1.6% by the end of 2025. This indicates a significant reduction from annual growth of 2.3% over the last three years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 8.8% per year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - PHINIA is expected to lag the wider industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for PHINIA. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that PHINIA's revenue is expected to perform worse than the wider industry. The consensus price target held steady at US$57.00, 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. We have estimates - from multiple PHINIA analysts - going out to 2027, and you can see them free on our platform here.

You still need to take note of risks, for example - PHINIA has 1 warning sign we think you should be aware of.

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.