ADTRAN Holdings, Inc. (NASDAQ:ADTN) Just Reported, And Analysts Assigned A US$12.40 Price Target

Shareholders might have noticed that ADTRAN Holdings, Inc. (NASDAQ:ADTN) filed its quarterly result this time last week. The early response was not positive, with shares down 2.2% to US$7.71 in the past week. Revenues of US$248m were in line with expectations, although statutory losses per share were US$0.13, some 13% smaller than was 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 gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

We've discovered 1 warning sign about ADTRAN Holdings. View them for free.

Taking into account the latest results, the most recent consensus for ADTRAN Holdings from six analysts is for revenues of US$1.04b in 2025. If met, it would imply a decent 10% increase on its revenue over the past 12 months. Losses are predicted to fall substantially, shrinking 57% to US$0.71. Yet prior to the latest earnings, the analysts had been forecasting revenues of US$1.04b and losses of US$0.72 per share in 2025.

Check out our latest analysis for ADTRAN Holdings

The analysts trimmed their valuations, with the average price target falling 6.1% to US$12.40, with the ongoing losses seemingly weighing on sentiment, despite no real changes to the earnings forecasts. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on ADTRAN Holdings, with the most bullish analyst valuing it at US$15.00 and the most bearish at US$9.00 per share. 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.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the ADTRAN Holdings' past performance and to peers in the same industry. We would highlight that ADTRAN Holdings' revenue growth is expected to slow, with the forecast 14% annualised growth rate until the end of 2025 being well below the historical 18% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 7.3% annually. 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 obvious conclusion is that the analysts made no changes to their forecasts for a loss next year. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

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

It is also worth noting that we have found 1 warning sign for ADTRAN Holdings that you need to take into consideration.

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.