A10 Networks, Inc. Just Beat EPS By 24%: Here's What Analysts Think Will Happen Next

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A week ago, A10 Networks, Inc. (NYSE:ATEN) came out with a strong set of first-quarter numbers that could potentially lead to a re-rate of the stock. The company beat forecasts, with revenue of US$66m, some 3.8% above estimates, and statutory earnings per share (EPS) coming in at US$0.13, 24% ahead of expectations. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

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NYSE:ATEN Earnings and Revenue Growth May 4th 2025

Taking into account the latest results, the most recent consensus for A10 Networks from six analysts is for revenues of US$280.3m in 2025. If met, it would imply a modest 4.9% increase on its revenue over the past 12 months. Statutory earnings per share are expected to descend 17% to US$0.58 in the same period. Before this earnings report, the analysts had been forecasting revenues of US$279.5m and earnings per share (EPS) of US$0.57 in 2025. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

Check out our latest analysis for A10 Networks

The consensus price target rose 7.3% to US$23.25despite there being no meaningful change to earnings estimates. It could be that the analystsare reflecting the predictability of A10 Networks' earnings by assigning a price premium. 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 A10 Networks analyst has a price target of US$25.00 per share, while the most pessimistic values it at US$20.00. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the A10 Networks' past performance and to peers in the same industry. The analysts are definitely expecting A10 Networks' growth to accelerate, with the forecast 6.6% annualised growth to the end of 2025 ranking favourably alongside historical growth of 3.7% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 13% per year. It seems obvious that, while the future growth outlook is brighter than the recent past, A10 Networks is expected to grow slower than the wider industry.