Valens Semiconductor Ltd. (NYSE:VLN) Just Released Its First-Quarter Earnings: Here's What Analysts Think

There's been a notable change in appetite for Valens Semiconductor Ltd. (NYSE:VLN) shares in the week since its first-quarter report, with the stock down 12% to US$2.39. The results don't look great, especially considering that statutory losses grew 14% toUS$0.08 per share. Revenues of US$16,828,000 did beat expectations by 2.1%, but it looks like a bit of a cold comfort. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit.

Taking into account the latest results, the current consensus from Valens Semiconductor's four analysts is for revenues of US$74.0m in 2025. This would reflect a decent 17% increase on its revenue over the past 12 months. Losses are supposed to decline, shrinking 15% from last year to US$0.28. Yet prior to the latest earnings, the analysts had been forecasting revenues of US$74.3m and losses of US$0.28 per share in 2025.

Check out our latest analysis for Valens Semiconductor

As a result there was no major change to the consensus price target of US$4.00, implying that the business is trading roughly in line with expectations despite ongoing losses. 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 Valens Semiconductor analyst has a price target of US$5.00 per share, while the most pessimistic values it at US$3.00. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

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 Valens Semiconductor is forecast to grow faster in the future than it has in the past, with revenues expected to display 24% annualised growth until the end of 2025. If achieved, this would be a much better result than the 13% annual decline over the past three years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 16% annually. Not only are Valens Semiconductor's revenues expected to improve, it seems that the analysts are also expecting it to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that the analysts reconfirmed their loss per share estimates for next year. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. 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.

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 Valens Semiconductor going out to 2027, and you can see them free on our platform here.

Before you take the next step you should know about the 1 warning sign for Valens Semiconductor that we have uncovered.

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.