Earnings Beat: Strattec Security Corporation Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Models

It's been a good week for Strattec Security Corporation (NASDAQ:STRT) shareholders, because the company has just released its latest first-quarter results, and the shares gained 7.9% to US$40.53. Revenues were US$139m, approximately in line with whatthe analyst expected, although statutory earnings per share (EPS) crushed expectations, coming in at US$0.92, an impressive 64% ahead of estimates. This is an important time for investors, as they can track a company's performance in its report, look at what expert is forecasting for next year, and see if there has been any change to expectations for the business. We've gathered the most recent statutory forecasts to see whether the analyst has changed their earnings models, following these results.

View our latest analysis for Strattec Security

Taking into account the latest results, Strattec Security's lone analyst currently expect revenues in 2025 to be US$537.5m, approximately in line with the last 12 months. Statutory earnings per share are forecast to nosedive 29% to US$2.76 in the same period. Yet prior to the latest earnings, the analyst had been anticipated revenues of US$547.7m and earnings per share (EPS) of US$1.98 in 2025. Although the revenue estimates have not really changed, we can see there's been a great increase in earnings per share expectations, suggesting that the analyst has become more bullish after the latest result.

The analyst has been lifting their price targets on the back of the earnings upgrade, with the consensus price target rising 13% to US$45.00.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Strattec Security's past performance and to peers in the same industry. We would highlight that revenue is expected to reverse, with a forecast 1.0% annualised decline to the end of 2025. That is a notable change from historical growth of 4.1% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 9.3% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Strattec Security is expected to lag the wider industry.

The Bottom Line

The most important thing here is that the analyst upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Strattec Security following these results. Fortunately, the analyst also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Strattec Security's revenue is expected to perform worse than the wider industry. There was also a nice increase in the price target, with the analyst clearly feeling that the intrinsic value of the business is improving.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have analyst estimates for Strattec Security going out as far as 2026, and you can see them free on our platform here.

You should always think about risks though. Case in point, we've spotted 2 warning signs for Strattec Security you should be aware of, and 1 of them is a bit concerning.

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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.