Lattice Semiconductor Corporation Just Recorded A 26% EPS Beat: Here's What Analysts Are Forecasting Next

It's been a pretty great week for Lattice Semiconductor Corporation (NASDAQ:LSCC) shareholders, with its shares surging 19% to US$76.26 in the week since its latest full-year results. It looks like a credible result overall - although revenues of US$737m were what the analysts expected, Lattice Semiconductor surprised by delivering a (statutory) profit of US$1.85 per share, an impressive 26% above what was forecast. 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 thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

View our latest analysis for Lattice Semiconductor

After the latest results, the consensus from Lattice Semiconductor's twelve analysts is for revenues of US$615.8m in 2024, which would reflect a definite 16% decline in revenue compared to the last year of performance. Statutory earnings per share are expected to tumble 49% to US$0.95 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$738.9m and earnings per share (EPS) of US$1.38 in 2024. Indeed, we can see that the analysts are a lot more bearish about Lattice Semiconductor's prospects following the latest results, administering a real cut to revenue estimates and slashing their EPS estimates to boot.

The analysts made no major changes to their price target of US$75.85, suggesting the downgrades are not expected to have a long-term impact on Lattice Semiconductor's valuation. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values Lattice Semiconductor at US$85.00 per share, while the most bearish prices it at US$60.00. 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.

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. We would highlight that revenue is expected to reverse, with a forecast 16% annualised decline to the end of 2024. That is a notable change from historical growth of 15% 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 17% 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 concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Lattice Semiconductor. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse than the wider industry. The consensus price target held steady at US$75.85, with the latest estimates not enough to have an impact on their price targets.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for Lattice Semiconductor going out to 2026, and you can see them free on our platform here..

You still need to take note of risks, for example - Lattice Semiconductor has 1 warning sign we think you should be aware of.

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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.