The latest analyst coverage could presage a bad day for nVent Electric plc (NYSE:NVT), with the analysts making across-the-board cuts to their statutory estimates that might leave shareholders a little shell-shocked. Revenue and earnings per share (EPS) forecasts were both revised downwards, with analysts seeing grey clouds on the horizon.

Following the latest downgrade, the current consensus, from the nine analysts covering nVent Electric, is for revenues of US$3.3b in 2025, which would reflect a noticeable 6.7% reduction in nVent Electric's sales over the past 12 months. Statutory earnings per share are supposed to nosedive 29% to US$2.49 in the same period. Prior to this update, the analysts had been forecasting revenues of US$4.0b and earnings per share (EPS) of US$3.17 in 2025. It looks like analyst sentiment has declined substantially, with a substantial drop in revenue estimates and a pretty serious decline to earnings per share numbers as well.

See our latest analysis for nVent Electric

Despite the cuts to forecast earnings, there was no real change to the US$79.62 price target, showing that the analysts don't think the changes have a meaningful impact on its intrinsic value.

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. These estimates imply that sales are expected to slow, with a forecast annualised revenue decline of 5.4% by the end of 2025. This indicates a significant reduction from annual growth of 11% 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 8.4% per year. It's pretty clear that nVent Electric's revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The biggest issue in the new estimates is that analysts have reduced their earnings per share estimates, suggesting business headwinds lay ahead for nVent Electric. Regrettably, they also downgraded their revenue estimates, and the latest forecasts imply the business will grow sales slower than the wider market. The lack of change in the price target is puzzling in light of the downgrade but, with a serious decline expected next year, we wouldn't be surprised if investors were a bit wary of nVent Electric.

Worse, nVent Electric is labouring under a substantial debt burden, which - if today's forecasts prove accurate - the forecast downgrade could potentially exacerbate. You can learn more about our debt analysis for free on our platform here.

You can also see our analysis of nVent Electric's Board and CEO remuneration and experience, and whether company insiders have been buying stock.

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