Analysts Have Made A Financial Statement On Synaptics Incorporated's (NASDAQ:SYNA) Third-Quarter Report

Synaptics Incorporated (NASDAQ:SYNA) came out with its third-quarter results last week, and we wanted to see how the business is performing and what industry forecasters think of the company following this report. It was a respectable set of results; while revenues of US$237m were in line with analyst predictions, statutory losses were 20% smaller than expected, with Synaptics losing US$0.46 per share. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

View our latest analysis for Synaptics

Taking into account the latest results, the most recent consensus for Synaptics from ten analysts is for revenues of US$1.12b in 2025. If met, it would imply a notable 20% increase on its revenue over the past 12 months. Losses are predicted to fall substantially, shrinking 35% to US$1.74. Before this latest report, the consensus had been expecting revenues of US$1.17b and US$1.68 per share in losses. Overall it looks as though the analysts are negative in this update. Although revenue forecasts held steady, the consensus also made a modest increase to to its losses per share forecasts.

There was no major change to the consensus price target of US$123, signalling that the business is performing roughly in line with expectations, despite lower earnings per share forecasts. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic Synaptics analyst has a price target of US$135 per share, while the most pessimistic values it at US$105. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Synaptics is an easy business to forecast or the the analysts are all using similar assumptions.

Of course, another way to look at these forecasts is to place them into context against the industry itself. One thing stands out from these estimates, which is that Synaptics is forecast to grow faster in the future than it has in the past, with revenues expected to display 15% annualised growth until the end of 2025. If achieved, this would be a much better result than the 1.8% annual decline over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue grow 17% per year. So while Synaptics' revenues are expected to improve, it seems that it is expected to grow at about the same rate as the overall industry.

The Bottom Line

The most important thing to note is the forecast of increased losses next year, suggesting all may not be well at Synaptics. Sadly, they also downgraded their revenue forecasts, but the business is still expected to grow at roughly the same rate as the industry itself. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Synaptics going out to 2026, and you can see them free on our platform here.

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

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.