Analysts Have Been Trimming Their Forrester Research, Inc. (NASDAQ:FORR) Price Target After Its Latest Report

It's been a good week for Forrester Research, Inc. (NASDAQ:FORR) shareholders, because the company has just released its latest quarterly results, and the shares gained 3.5% to US$11.09. It was a pretty bad result overall; while revenues were in line with expectations at US$90m, statutory losses exploded to US$4.62 per share. This is an important time for investors, as they can track a company's performance in its report, look at what experts are 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 analysts have changed their earnings models, following these results.

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Taking into account the latest results, the three analysts covering Forrester Research provided consensus estimates of US$406.5m revenue in 2025, which would reflect a measurable 3.7% decline over the past 12 months. The loss per share is expected to ameliorate slightly, reducing to US$4.19. Yet prior to the latest earnings, the analysts had been forecasting revenues of US$406.7m and losses of US$2.70 per share in 2025. While this year's revenue estimates held steady, there was also a regrettable increase in loss per share expectations, suggesting the consensus has a bit of a mixed view on the stock.

Check out our latest analysis for Forrester Research

With the increase in forecast losses for next year, it's perhaps no surprise to see that the average price target dipped 6.7% to US$14.00, with the analysts signalling that growing losses would be a definite concern.

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. Over the past five years, revenues have declined around 0.4% annually. Worse, forecasts are essentially predicting the decline to accelerate, with the estimate for an annualised 4.9% decline in revenue until the end of 2025. Compare this against analyst estimates for companies in the broader industry, which suggest that revenues (in aggregate) are expected to grow 6.9% annually. So while a broad number of companies are forecast to grow, unfortunately Forrester Research is expected to see its revenue affected worse than other companies in the industry.

The Bottom Line

The most important thing to take away is that the analysts increased their loss per share estimates for next year. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Forrester Research's revenue is expected to perform worse than the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Forrester Research's future valuation.

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 forecasts for Forrester Research going out to 2026, and you can see them free on our platform here.

You can also see our analysis of Forrester Research's Board and CEO remuneration and experience, and whether company insiders have been buying stock.

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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.