It's shaping up to be a tough period for nVent Electric plc (NYSE:NVT), which a week ago released some disappointing quarterly results that could have a notable impact on how the market views the stock. It looks like a clear earnings miss, with both revenues and earnings falling well short of analyst predictions. Revenues of US$782m missed by 17%, and statutory earnings per share of US$0.62 fell short of forecasts by 11%. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

Check out our latest analysis for nVent Electric

After the latest results, the consensus from nVent Electric's eight analysts is for revenues of US$3.30b in 2025, which would reflect a discernible 6.7% decline in revenue compared to the last year of performance. Statutory earnings per share are forecast to plunge 28% to US$2.53 in the same period. Before this earnings report, the analysts had been forecasting revenues of US$3.96b and earnings per share (EPS) of US$3.17 in 2025. It looks like sentiment has declined substantially in the aftermath of these results, with a substantial drop in revenue estimates and a large cut to earnings per share numbers as well.

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. 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 nVent Electric analyst has a price target of US$91.62 per share, while the most pessimistic values it at US$60.00. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the nVent Electric's past performance and to peers in the same industry. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 5.4% by the end of 2025. This indicates a significant reduction from annual growth of 11% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 8.4% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - nVent Electric 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 nVent Electric. 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 held steady at US$79.62, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for nVent Electric going out to 2026, and you can see them free on our platform here.

We don't want to rain on the parade too much, but we did also find 2 warning signs for nVent Electric that you need to be mindful 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.