Results: A10 Networks, Inc. Beat Earnings Expectations And Analysts Now Have New Forecasts

As you might know, A10 Networks, Inc. (NYSE:ATEN) just kicked off its latest third-quarter results with some very strong numbers. Results were good overall, with revenues beating analyst predictions by 5.6% to hit US$75m. Statutory earnings per share (EPS) came in at US$0.17, some 9.7% above whatthe analysts had expected. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

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Following the latest results, A10 Networks' seven analysts are now forecasting revenues of US$309.4m in 2026. This would be a solid 8.8% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to accumulate 4.2% to US$0.73. Before this earnings report, the analysts had been forecasting revenues of US$304.6m and earnings per share (EPS) of US$0.74 in 2026. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

See our latest analysis for A10 Networks

There were no changes to revenue or earnings estimates or the price target of US$23.00, suggesting that the company has met expectations in its recent result. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. Currently, the most bullish analyst values A10 Networks at US$25.00 per share, while the most bearish prices it at US$21.00. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. It's clear from the latest estimates that A10 Networks' rate of growth is expected to accelerate meaningfully, with the forecast 7.0% annualised revenue growth to the end of 2026 noticeably faster than its historical growth of 3.2% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to see revenue growth of 15% annually. So it's clear that despite the acceleration in growth, A10 Networks is expected to grow meaningfully slower than the industry average.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that A10 Networks' revenue is expected to perform worse than the wider industry. The consensus price target held steady at US$23.00, with the latest estimates not enough to have an impact on their price targets.

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 A10 Networks going out to 2027, and you can see them free on our platform here.

You can also see our analysis of A10 Networks' Board and CEO remuneration and experience, and whether company insiders have been buying stock.

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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.