Exponent, Inc. Just Beat EPS By 8.5%: Here's What Analysts Think Will Happen Next

A week ago, Exponent, Inc. (NASDAQ:EXPO) came out with a strong set of third-quarter numbers that could potentially lead to a re-rate of the stock. The company beat expectations with revenues of US$137m arriving 4.0% ahead of forecasts. Statutory earnings per share (EPS) were US$0.55, 8.5% ahead of estimates. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. 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 Exponent's three analysts is for revenues of US$577.6m in 2026. This reflects a solid 8.8% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to accumulate 7.4% to US$2.23. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$569.9m and earnings per share (EPS) of US$2.15 in 2026. So the consensus seems to have become somewhat more optimistic on Exponent's earnings potential following these results.

Check out our latest analysis for Exponent

The consensus price target fell 5.7% to US$83.00, suggesting the increase in earnings forecasts was not enough to offset other the analysts concerns. 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 Exponent analyst has a price target of US$90.00 per share, while the most pessimistic values it at US$76.00. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Exponent is an easy business to forecast or the the analysts are all using similar assumptions.

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. The period to the end of 2026 brings more of the same, according to the analysts, with revenue forecast to display 6.9% growth on an annualised basis. That is in line with its 6.5% annual growth over the past five years. Juxtapose this against our data, which suggests that other companies (with analyst coverage) in the industry are forecast to see their revenues grow 5.9% per year. It's clear that while Exponent's revenue growth is expected to continue on its current trajectory, it's only expected to grow in line with the industry itself.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Exponent's 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. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

With that in mind, we wouldn't be too quick to come to a conclusion on Exponent. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Exponent going out to 2027, and you can see them free on our platform here..

That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 1 warning sign with Exponent , and understanding it should be part of your investment process.

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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.