ADTRAN Holdings, Inc. (NASDAQ:ADTN) Analysts Are Pretty Bullish On The Stock After Recent Results

It's been a sad week for ADTRAN Holdings, Inc. (NASDAQ:ADTN), who've watched their investment drop 10% to US$9.51 in the week since the company reported its yearly result. Revenues came in at US$923m, in line with forecasts and the company reported a statutory loss of US$5.67 per share, roughly in line with expectations. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

Check out our latest analysis for ADTRAN Holdings

Taking into account the latest results, the current consensus from ADTRAN Holdings' six analysts is for revenues of US$1.04b in 2025. This would reflect a decent 12% increase on its revenue over the past 12 months. Losses are predicted to fall substantially, shrinking 87% to US$0.72. Before this earnings announcement, the analysts had been modelling revenues of US$1.02b and losses of US$0.33 per share in 2025. So it's pretty clear the analysts have mixed opinions on ADTRAN Holdings even after this update; although they reconfirmed their revenue numbers, it came at the cost of a regrettable increase in per-share losses.

Although the analysts are now forecasting higher losses, the average price target rose 15% to 11.5, which could indicate that these losses are expected to be "one-off", or are not anticipated to have a longer-term impact on the business. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values ADTRAN Holdings at US$15.00 per share, while the most bearish prices it at US$9.00. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that ADTRAN Holdings' revenue growth is expected to slow, with the forecast 12% annualised growth rate until the end of 2025 being well below the historical 19% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 7.8% per year. Even after the forecast slowdown in growth, it seems obvious that ADTRAN Holdings is also expected to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that the analysts increased their loss per share estimates for next year. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for ADTRAN Holdings going out to 2027, and you can see them free on our platform here..

Don't forget that there may still be risks. For instance, we've identified 1 warning sign for ADTRAN Holdings that you should be aware of.

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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.