CTS Corporation Just Missed EPS By 25%: Here's What Analysts Think Will Happen Next

CTS Corporation (NYSE:CTS) shareholders are probably feeling a little disappointed, since its shares fell 3.3% to US$40.76 in the week after its latest third-quarter results. Results overall were not great, with earnings of US$0.46 per share falling drastically short of analyst expectations. Meanwhile revenues hit US$143m and were slightly better than forecasts. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analyst is expecting for next year.

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Taking into account the latest results, the consensus forecast from CTS' single analyst is for revenues of US$561.5m in 2026. This reflects a modest 5.6% improvement in revenue compared to the last 12 months. Per-share earnings are expected to expand 17% to US$2.40. Before this earnings report, the analyst had been forecasting revenues of US$565.1m and earnings per share (EPS) of US$2.41 in 2026. So it's pretty clear that, although the analyst has updated their estimates, there's been no major change in expectations for the business following the latest results.

View our latest analysis for CTS

With the analyst reconfirming their revenue and earnings forecasts, it's surprising to see that the price target rose 9.3% to US$47.00. It looks as though they previously had some doubts over whether the business would live up to their expectations.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the CTS' past performance and to peers in the same industry. The analyst is definitely expecting CTS' growth to accelerate, with the forecast 4.5% annualised growth to the end of 2026 ranking favourably alongside historical growth of 2.7% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 9.7% per year. So it's clear that despite the acceleration in growth, CTS is expected to grow meaningfully slower than the industry average.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analyst reconfirming that the business is performing in line with their previous earnings per share estimates. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. We note an upgrade to the price target, suggesting that the analyst believes the intrinsic value of the business is likely to improve over time.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At least one analyst has provided forecasts out to 2027, which can be seen for free on our platform here.

Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months on our platform, 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.