Investors in ESCO Technologies Inc. (NYSE:ESE) had a good week, as its shares rose 5.3% to close at US$176 following the release of its second-quarter results. ESCO Technologies reported US$266m in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of US$1.20 beat expectations, being 6.5% higher than what the analysts expected. 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.

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Taking into account the latest results, the current consensus from ESCO Technologies' three analysts is for revenues of US$1.20b in 2025. This would reflect a notable 12% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to step up 16% to US$5.31. Before this earnings report, the analysts had been forecasting revenues of US$1.14b and earnings per share (EPS) of US$5.00 in 2025. So there seems to have been a moderate uplift in sentiment following the latest results, given the upgrades to both revenue and earnings per share forecasts for next year.

View our latest analysis for ESCO Technologies

Despite these upgrades,the analysts have not made any major changes to their price target of US$173, suggesting that the higher estimates are not likely to have a long term impact on what the stock is worth. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values ESCO Technologies at US$190 per share, while the most bearish prices it at US$161. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting ESCO Technologies is an easy business to forecast or the the analysts are all using similar assumptions.

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. It's clear from the latest estimates that ESCO Technologies' rate of growth is expected to accelerate meaningfully, with the forecast 26% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 9.3% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 3.7% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect ESCO Technologies to grow faster than the wider industry.

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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 ESCO Technologies following these results. Happily, they also upgraded their revenue estimates, and are forecasting them to grow faster than the wider industry. The consensus price target held steady at US$173, with the latest estimates not enough to have an impact on their price targets.

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. At Simply Wall St, we have a full range of analyst estimates for ESCO Technologies going out to 2026, and you can see them free on our platform here..

It might also be worth considering whether ESCO Technologies' debt load is appropriate, using our debt analysis tools  on the Simply Wall St platform, here.

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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.

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