Investors in Synaptics Incorporated (NASDAQ:SYNA) had a good week, as its shares rose 2.1% to close at US$59.83 following the release of its third-quarter results. It was a pretty bad result overall; while revenues were in line with expectations at US$267m, statutory losses exploded to US$0.56 per share. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

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Taking into account the latest results, the consensus forecast from Synaptics' nine analysts is for revenues of US$1.17b in 2026. This reflects a solid 13% improvement in revenue compared to the last 12 months. The company is forecast to report a statutory loss of US$2.49 in 2026, a sharp decline from a profit over the last year. Before this earnings report, the analysts had been forecasting revenues of US$1.18b and earnings per share (EPS) of US$0.41 in 2026. While the analysts have made no real change to their revenue estimates, we can see that the consensus is now modelling a loss next year - a clear dip in sentiment compared to the previous outlook of a profit.

Check out our latest analysis for Synaptics

The consensus price target fell 6.1% to US$87.71per share, with the analysts clearly concerned by ballooning losses. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. Currently, the most bullish analyst values Synaptics at US$100.00 per share, while the most bearish prices it at US$65.00. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. One thing stands out from these estimates, which is that Synaptics is forecast to grow faster in the future than it has in the past, with revenues expected to display 9.9% annualised growth until the end of 2026. If achieved, this would be a much better result than the 6.3% annual decline over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 16% annually for the foreseeable future. So although Synaptics' revenue growth is expected to improve, it is still expected to grow slower than the industry.

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The Bottom Line

The most important thing to take away is that the analysts are expecting Synaptics to become unprofitable next year. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse 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. At Simply Wall St, we have a full range of analyst estimates for Synaptics going out to 2027, and you can see them free on our platform here..

However, before you get too enthused, we've discovered 2 warning signs for Synaptics (1 is a bit unpleasant!) 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.

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