It's been a good week for CTS Corporation (NYSE:CTS) shareholders, because the company has just released its latest quarterly results, and the shares gained 3.6% to US$49.49. It looks like a credible result overall - although revenues of US$132m were in line with what the analyst predicted, CTS surprised by delivering a statutory profit of US$0.61 per share, a notable 13% above expectations. Earnings are an important time for investors, as they can track a company's performance, look at what the analyst is forecasting for next year, and see if there's been a change in sentiment towards the company. With this in mind, we've gathered the latest statutory forecasts to see what the analyst is expecting for next year.

Taking into account the latest results, the most recent consensus for CTS from solitary analyst is for revenues of US$551.6m in 2025. If met, it would imply an okay 7.5% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to ascend 19% to US$2.37. Yet prior to the latest earnings, the analyst had been anticipated revenues of US$570.3m and earnings per share (EPS) of US$2.39 in 2025. So it looks like the analyst has become a bit less optimistic after the latest results announcement, with revenues expected to fall even as the company is supposed to maintain EPS.

The analyst has also increased their price target 14% to US$49.00, clearly signalling that lower revenue forecasts next year are not expected to have a material impact on CTS' valuation.

Of course, another way to look at these forecasts is to place them into context against the industry itself. The period to the end of 2025 brings more of the same, according to the analyst, with revenue forecast to display 6.0% growth on an annualised basis. That is in line with its 5.2% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 7.5% per year. 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 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. Unfortunately, they also downgraded their revenue estimates, and our data indicates underperformance compared to the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. Even so, earnings are more important to the intrinsic value of the business. 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 2026, which can be seen for free on our platform here.

You can also view our analysis of CTS' balance sheet, and whether we think CTS is carrying too much debt, for free 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.