Allot Ltd. Beat Analyst Estimates: See What The Consensus Is Forecasting For Next Year

Allot Ltd. (NASDAQ:ALLT) defied analyst predictions to release its quarterly results, which were ahead of market expectations. It was overall a positive result, with revenues beating expectations by 2.9% to hit US$26m. Allot also reported a statutory profit of US$0.07, which was an impressive 250% above what the analysts had forecast. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. 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 most recent consensus for Allot from five analysts is for revenues of US$113.6m in 2026. If met, it would imply a solid 15% increase on its revenue over the past 12 months. Per-share earnings are expected to jump 579% to US$0.15. Before this earnings report, the analysts had been forecasting revenues of US$112.8m and earnings per share (EPS) of US$0.14 in 2026. Although the revenue estimates have not really changed, we can see there's been a nice increase in earnings per share expectations, suggesting that the analysts have become more bullish after the latest result.

View our latest analysis for Allot

The consensus price target was unchanged at US$13.38, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. 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 Allot analyst has a price target of US$15.00 per share, while the most pessimistic values it at US$12.50. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Allot's past performance and to peers in the same industry. One thing stands out from these estimates, which is that Allot is forecast to grow faster in the future than it has in the past, with revenues expected to display 12% annualised growth until the end of 2026. If achieved, this would be a much better result than the 11% 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 15% per year. So although Allot's revenue growth is expected to improve, it is still expected to grow slower than the industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Allot following these results. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Allot's revenue is expected to perform worse 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.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Allot going out to 2027, and you can see them free on our platform here.

Even so, be aware that Allot is showing 1 warning sign in our investment analysis , you should know about...

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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.