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Lattice Semiconductor Corporation (NASDAQ:LSCC) last week reported its latest quarterly results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. It looks like a pretty bad result, all things considered. Although revenues of US$120m were in line with analyst predictions, statutory earnings fell badly short, missing estimates by 61% to hit US$0.04 per share. 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. 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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After the latest results, the 14 analysts covering Lattice Semiconductor are now predicting revenues of US$516.9m in 2025. If met, this would reflect a satisfactory 5.8% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to swell 16% to US$0.43. Before this earnings report, the analysts had been forecasting revenues of US$520.6m and earnings per share (EPS) of US$0.58 in 2025. So there's definitely been a decline in sentiment after the latest results, noting the pretty serious reduction to new EPS forecasts.
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It might be a surprise to learn that the consensus price target was broadly unchanged at US$62.88, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values Lattice Semiconductor at US$75.00 per share, while the most bearish prices it at US$50.00. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Lattice Semiconductor's past performance and to peers in the same industry. We can infer from the latest estimates that forecasts expect a continuation of Lattice Semiconductor'shistorical trends, as the 7.8% annualised revenue growth to the end of 2025 is roughly in line with the 9.1% annual growth over the past five years. Compare this with the broader industry (in aggregate), which analyst estimates suggest will see revenues grow 16% annually. So it's pretty clear that Lattice Semiconductor is expected to grow slower than similar companies in the same industry.