Last week, you might have seen that Carpenter Technology Corporation (NYSE:CRS) released its quarterly result to the market. The early response was not positive, with shares down 4.5% to US$63.41 in the past week. Results look mixed - while revenue fell marginally short of analyst estimates at US$624m, statutory earnings were in line with expectations, at US$0.85 per share. 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've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

View our latest analysis for Carpenter Technology

Taking into account the latest results, the current consensus from Carpenter Technology's four analysts is for revenues of US$2.80b in 2024. This would reflect an okay 2.7% increase on its revenue over the past 12 months. Per-share earnings are expected to leap 38% to US$4.00. In the lead-up to this report, the analysts had been modelling revenues of US$2.84b and earnings per share (EPS) of US$4.02 in 2024. 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.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at US$86.00. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Carpenter Technology analyst has a price target of US$100.00 per share, while the most pessimistic values it at US$75.00. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

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. The analysts are definitely expecting Carpenter Technology's growth to accelerate, with the forecast 5.5% annualised growth to the end of 2024 ranking favourably alongside historical growth of 0.5% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 4.1% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Carpenter Technology is expected to grow much faster than its industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. The consensus price target held steady at US$86.00, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on Carpenter Technology. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Carpenter Technology analysts - going out to 2026, and you can see them free on our platform here.

Don't forget that there may still be risks. For instance, we've identified 1 warning sign for Carpenter Technology that you should be aware of.

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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.