Analysts Are Updating Their CTS Corporation (NYSE:CTS) Estimates After Its Yearly Results

Shareholders might have noticed that CTS Corporation (NYSE:CTS) filed its annual result this time last week. The early response was not positive, with shares down 9.0% to US$46.47 in the past week. Revenues of US$516m were in line with forecasts, although statutory earnings per share (EPS) came in below expectations at US$1.89, missing estimates by 4.5%. The analyst 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. We thought readers would find it interesting to see the analyst latest (statutory) post-earnings forecasts for next year.

View our latest analysis for CTS

Following the latest results, CTS' lone analyst are now forecasting revenues of US$537.8m in 2025. This would be an okay 4.3% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to grow 18% to US$2.28. Before this earnings report, the analyst had been forecasting revenues of US$551.6m and earnings per share (EPS) of US$2.37 in 2025. It's pretty clear that pessimism has reared its head after the latest results, leading to a weaker revenue outlook and a small dip in earnings per share estimates.

Despite the cuts to forecast earnings, there was no real change to the US$47.00 price target, showing that the analyst doesn't think the changes have a meaningful impact on its intrinsic value.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. The period to the end of 2025 brings more of the same, according to the analyst, with revenue forecast to display 4.3% growth on an annualised basis. That is in line with its 4.8% annual growth over the past five years. Compare this with the broader industry (in aggregate), which analyst estimates suggest will see revenues grow 7.4% annually. So although CTS is expected to maintain its revenue growth rate, it's forecast to grow slower than the wider industry.

The Bottom Line

The most important thing to take away is that the analyst downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will 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.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have analyst estimates for CTS going out as far as 2026, and you can see them free on our platform here.

We also provide an overview of the CTS Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, here.

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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.