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The latest analyst coverage could presage a bad day for Lattice Semiconductor Corporation (NASDAQ:LSCC), with the analysts making across-the-board cuts to their statutory estimates that might leave shareholders a little shell-shocked. Both revenue and earnings per share (EPS) forecasts went under the knife, suggesting the analysts have soured majorly on the business.
Following the latest downgrade, the 13 analysts covering Lattice Semiconductor provided consensus estimates of US$528m revenue in 2025, which would reflect a measurable 6.1% decline on its sales over the past 12 months. Statutory earnings per share are anticipated to dive 42% to US$0.60 in the same period. Before this latest update, the analysts had been forecasting revenues of US$610m and earnings per share (EPS) of US$0.96 in 2025. Indeed, we can see that the analysts are a lot more bearish about Lattice Semiconductor's prospects, administering a measurable cut to revenue estimates and slashing their EPS estimates to boot.
See our latest analysis for Lattice Semiconductor
It'll come as no surprise then, to learn that the analysts have cut their price target 9.5% to US$55.02.
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. These estimates imply that sales are expected to slow, with a forecast annualised revenue decline of 4.9% by the end of 2025. This indicates a significant reduction from annual growth of 13% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 19% per year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Lattice Semiconductor is expected to lag the wider industry.
The Bottom Line
The biggest issue in the new estimates is that analysts have reduced their earnings per share estimates, suggesting business headwinds lay ahead for Lattice Semiconductor. Unfortunately analysts also downgraded their revenue estimates, and industry data suggests that Lattice Semiconductor's revenues are expected to grow slower than the wider market. After such a stark change in sentiment from analysts, we'd understand if readers now felt a bit wary of Lattice Semiconductor.
Unfortunately, by using these new estimates as a starting point, we've run a discounted cash flow calculation (DCF) on Lattice Semiconductor that suggests the company could be somewhat overvalued. Learn why, and examine the assumptions that underpin our valuation by visiting our free platform here to learn more about our valuation approach.