Shareholders might have noticed that Everspin Technologies, Inc. (NASDAQ:MRAM) filed its quarterly result this time last week. The early response was not positive, with shares down 7.8% to US$5.87 in the past week. It looks like a credible result overall - although revenues of US$12m were what the analysts expected, Everspin Technologies surprised by delivering a statutory profit of US$0.10 per share, instead of the previously forecast loss. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

View our latest analysis for Everspin Technologies

Following last week's earnings report, Everspin Technologies' dual analysts are forecasting 2025 revenues to be US$53.2m, approximately in line with the last 12 months. Statutory earnings per share are predicted to jump 128% to US$0.16. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$54.2m and earnings per share (EPS) of US$0.06 in 2025. Although the revenue estimates have not really changed, we can see there's been a great increase in earnings per share expectations, suggesting that the analysts have become more bullish after the latest result.

The consensus price target fell 22% to US$9.00, suggesting the increase in earnings forecasts was not enough to offset other the analysts concerns.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We would highlight that revenue is expected to reverse, with a forecast 1.0% annualised decline to the end of 2025. That is a notable change from historical growth of 11% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 18% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Everspin Technologies is expected to lag the wider industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Everspin Technologies' earnings potential 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. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Everspin Technologies' future valuation.

With that in mind, we wouldn't be too quick to come to a conclusion on Everspin Technologies. Long-term earnings power is much more important than next year's profits. At least one analyst has provided forecasts out to 2026, which can be seen for free on our platform here.

Even so, be aware that Everspin Technologies is showing 4 warning signs in our investment analysis , you should know about...

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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.