It's been a sad week for Navitas Semiconductor Corporation (NASDAQ:NVTS), who've watched their investment drop 17% to US$2.36 in the week since the company reported its quarterly result. Revenues of US$22m arrived in line with expectations, although statutory losses per share were US$0.10, an impressive 35% smaller than what broker models predicted. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Navitas Semiconductor after the latest results.
Following the recent earnings report, the consensus from eight analysts covering Navitas Semiconductor is for revenues of US$89.3m in 2025. This implies a small 2.3% decline in revenue compared to the last 12 months. Losses are forecast to balloon 28% to US$0.54 per share. Yet prior to the latest earnings, the analysts had been forecasting revenues of US$121.1m and losses of US$0.57 per share in 2025. So there's been quite a change-up of views after the recent consensus updates, withthe analysts making a serious cut to their revenue forecasts while also reducing the estimated losses the business will incur.
The consensus price target fell 30% to US$3.81, with the dip in revenue estimates clearly souring sentiment, despite the forecast reduction in losses. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values Navitas Semiconductor at US$5.00 per share, while the most bearish prices it at US$2.20. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.
Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 1.9% by the end of 2025. This indicates a significant reduction from annual growth of 49% 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. It's pretty clear that Navitas Semiconductor's revenues are expected to perform substantially worse than the wider industry.
The Bottom Line
The most important thing to take away is that the analysts reconfirmed their loss per share estimates for next year. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse than the wider industry. Still, earnings per share are more important to value creation for shareholders. 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.
With that in mind, we wouldn't be too quick to come to a conclusion on Navitas Semiconductor. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Navitas Semiconductor going out to 2026, and you can see them free on our platform here..
Plus, you should also learn about the 5 warning signs we've spotted with Navitas Semiconductor (including 1 which is concerning) .
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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.
