Shareholders will be ecstatic, with their stake up 21% over the past week following UL Solutions Inc.'s (NYSE:ULS) latest quarterly results. The result was positive overall - although revenues of US$705m were in line with what the analysts predicted, UL Solutions surprised by delivering a statutory profit of US$0.33 per share, modestly greater than 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

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Taking into account the latest results, the consensus forecast from UL Solutions' eleven analysts is for revenues of US$3.03b in 2025. This reflects a modest 4.4% improvement in revenue compared to the last 12 months. Statutory per share are forecast to be US$1.68, approximately in line with the last 12 months. Before this earnings report, the analysts had been forecasting revenues of US$3.03b and earnings per share (EPS) of US$1.62 in 2025. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

Check out our latest analysis for UL Solutions

The consensus price target rose 15% to US$67.75, suggesting that higher earnings estimates flow through to the stock's valuation as well. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. Currently, the most bullish analyst values UL Solutions at US$78.00 per share, while the most bearish prices it at US$59.00. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting UL Solutions is an easy business to forecast or the the analysts are all using similar assumptions.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We can infer from the latest estimates that forecasts expect a continuation of UL Solutions'historical trends, as the 5.8% annualised revenue growth to the end of 2025 is roughly in line with the 5.2% annual growth over the past three years. Juxtapose this against our data, which suggests that other companies (with analyst coverage) in the industry are forecast to see their revenues grow 6.9% per year. It's clear that while UL Solutions' revenue growth is expected to continue on its current trajectory, it's only expected to grow in line with the industry itself.

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The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around UL Solutions' earnings potential next year. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

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 estimates - from multiple UL Solutions analysts - going out to 2027, and you can see them free on our platform here.

However, before you get too enthused, we've discovered 1 warning sign for UL Solutions 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.

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