Things Look Grim For Lattice Semiconductor Corporation (NASDAQ:LSCC) After Today's Downgrade

The latest analyst coverage could presage a bad day for Lattice Semiconductor Corporation (NASDAQ:LSCC), with the analysts making across-the-board cuts to their statutory estimates that might leave shareholders a little shell-shocked. Revenue and earnings per share (EPS) forecasts were both revised downwards, with the analysts seeing grey clouds on the horizon.

Following the latest downgrade, the 13 analysts covering Lattice Semiconductor provided consensus estimates of US$528m revenue in 2025, which would reflect a discernible 6.1% decline on its sales over the past 12 months. Statutory earnings per share are supposed to plummet 42% to US$0.60 in the same period. Prior to this update, the analysts had been forecasting revenues of US$610m and earnings per share (EPS) of US$0.96 in 2025. It looks like analyst sentiment has declined substantially, with a measurable cut to revenue estimates and a large cut to earnings per share numbers as well.

View our latest analysis for Lattice Semiconductor

The consensus price target fell 9.5% to US$55.02, with the weaker earnings outlook clearly leading analyst valuation estimates.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We would highlight that sales are expected to reverse, with a forecast 4.9% annualised revenue decline to the end of 2025. That is a notable change from historical growth of 13% 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 19% 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 issue in the new estimates is that analysts have reduced their earnings per share estimates, suggesting business headwinds lay ahead for Lattice Semiconductor. Regrettably, they also downgraded their revenue estimates, and the latest forecasts imply the business will grow sales slower than the wider market. With a serious cut to next year's expectations and a falling price target, we wouldn't be surprised if investors were becoming wary of Lattice Semiconductor.

Uncomfortably, our automated valuation tool also suggests that Lattice Semiconductor stock could be overvalued following the downgrade. Shareholders could be left disappointed if these estimates play out. You can learn more about our valuation methodology for free on our platform here.

Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are downgrading their estimates. So you may also wish to search this free list of stocks with high insider ownership.

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