Investors in Strattec Security Corporation (NASDAQ:STRT) had a good week, as its shares rose 7.9% to close at US$40.53 following the release of its quarterly results. It looks like a credible result overall - although revenues of US$139m were what the analyst expected, Strattec Security surprised by delivering a (statutory) profit of US$0.92 per share, an impressive 64% above what was forecast. 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.

See our latest analysis for Strattec Security

Following last week's earnings report, Strattec Security's sole analyst are forecasting 2025 revenues to be US$537.5m, approximately in line with the last 12 months. Statutory earnings per share are expected to nosedive 29% to US$2.76 in the same period. Before this earnings report, the analyst had been forecasting revenues of US$547.7m and earnings per share (EPS) of US$1.98 in 2025. There was no real change to the revenue estimates, but the analyst does seem more bullish on earnings, given the considerable lift to earnings per share expectations following these results.

The consensus price target rose 13% to US$45.00, suggesting that higher earnings estimates flow through to the stock's valuation as well.

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. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 1.0% by the end of 2025. This indicates a significant reduction from annual growth of 4.1% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 9.3% per year. It's pretty clear that Strattec Security's revenues are expected to perform substantially worse than 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 Strattec Security's 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. There was also a nice increase in the price target, with the analyst clearly feeling that the intrinsic value of the business is improving.

With that in mind, we wouldn't be too quick to come to a conclusion on Strattec Security. 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.

Before you take the next step you should know about the 2 warning signs for Strattec Security (1 makes us a bit uncomfortable!) that we have uncovered.

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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.