It's been a good week for The Gorman-Rupp Company (NYSE:GRC) shareholders, because the company has just released its latest quarterly results, and the shares gained 5.8% to US$35.42. The result was positive overall - although revenues of US$164m were in line with what the analysts predicted, Gorman-Rupp surprised by delivering a statutory profit of US$0.46 per share, modestly greater than expected. 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 gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

Our free stock report includes 1 warning sign investors should be aware of before investing in Gorman-Rupp. Read for free now.

Taking into account the latest results, the current consensus from Gorman-Rupp's twin analysts is for revenues of US$684.3m in 2025. This would reflect an okay 3.0% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to surge 23% to US$2.09. In the lead-up to this report, the analysts had been modelling revenues of US$684.2m and earnings per share (EPS) of US$2.04 in 2025. So the consensus seems to have become somewhat more optimistic on Gorman-Rupp's earnings potential following these results.

Check out our latest analysis for Gorman-Rupp

The analysts have been lifting their price targets on the back of the earnings upgrade, with the consensus price target rising 6.0% to US$53.00.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Gorman-Rupp's past performance and to peers in the same industry. We would highlight that Gorman-Rupp's revenue growth is expected to slow, with the forecast 4.0% annualised growth rate until the end of 2025 being well below the historical 16% p.a. growth over the last five years. Compare this to the 183 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 3.3% per year. So it's pretty clear that, while Gorman-Rupp's revenue growth is expected to slow, it's expected to grow roughly in line with the industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Gorman-Rupp following these results. 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 analyst estimates for Gorman-Rupp going out as far as 2026, and you can see them free on our platform here.

And what about risks? Every company has them, and we've spotted 1 warning sign for Gorman-Rupp you should know about.

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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.