As you might know, Littelfuse, Inc. (NASDAQ:LFUS) recently reported its quarterly numbers. Revenues were US$567m, approximately in line with expectations, although statutory earnings per share (EPS) performed substantially better. EPS of US$2.32 were also better than expected, beating analyst predictions by 15%. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

Check out our latest analysis for Littelfuse

Taking into account the latest results, the consensus forecast from Littelfuse's six analysts is for revenues of US$2.37b in 2025. This reflects a solid 8.1% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to soar 33% to US$10.46. Before this earnings report, the analysts had been forecasting revenues of US$2.39b and earnings per share (EPS) of US$10.98 in 2025. The analysts seem to have become a little more negative on the business after the latest results, given the minor downgrade to their earnings per share numbers for next year.

It might be a surprise to learn that the consensus price target was broadly unchanged at US$295, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values Littelfuse at US$310 per share, while the most bearish prices it at US$280. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

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. It's pretty clear that there is an expectation that Littelfuse's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 6.4% growth on an annualised basis. This is compared to a historical growth rate of 12% over the past five years. Compare this to the 183 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 7.4% per year. Factoring in the forecast slowdown in growth, it looks like Littelfuse is forecast to grow at about the same rate as the wider industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Littelfuse. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as 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.

With that in mind, we wouldn't be too quick to come to a conclusion on Littelfuse. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Littelfuse analysts - going out to 2026, and you can see them free on our platform here.

We don't want to rain on the parade too much, but we did also find 1 warning sign for Littelfuse that you need to be mindful 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.