Results: CTS Corporation Beat Earnings Expectations And Analysts Now Have New Forecasts

Investors in CTS Corporation (NYSE:CTS) had a good week, as its shares rose 2.8% to close at US$57.10 following the release of its first-quarter results. Revenues were US$139m, approximately in line with expectations, although statutory earnings per share (EPS) performed substantially better. EPS of US$0.59 were also better than expected, beating analyst predictions by 13%. The analyst typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we collected the latest post-earnings statutory consensus estimate to see what could be in store for next year.

This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality.

After the latest results, the single analyst covering CTS are now predicting revenues of US$571.1m in 2026. If met, this would reflect a reasonable 2.9% improvement in revenue compared to the last 12 months. Statutory per-share earnings are expected to be US$2.41, roughly flat on the last 12 months. Before this earnings report, the analyst had been forecasting revenues of US$565.7m and earnings per share (EPS) of US$2.40 in 2026. So it's pretty clear that, although the analyst has updated their estimates, there's been no major change in expectations for the business following the latest results.

View our latest analysis for CTS

With the analyst reconfirming their revenue and earnings forecasts, it's surprising to see that the price target rose 7.4% to US$58.00. It looks as though they previously had some doubts over whether the business would live up to their expectations.

Of course, another way to look at these forecasts is to place them into context against the industry itself. The analyst is definitely expecting CTS' growth to accelerate, with the forecast 3.9% annualised growth to the end of 2026 ranking favourably alongside historical growth of 0.8% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to see revenue growth of 12% annually. So it's clear that despite the acceleration in growth, CTS is expected to grow meaningfully slower than the industry average.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analyst reconfirming that the business is performing in line with their previous earnings per share estimates. Fortunately, the analyst also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that CTS' revenue is expected to 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 CTS. Long-term earnings power is much more important than next year's profits. We have analyst estimates for CTS going out as far as 2027, and you can see them free on our platform here.

You can also see our analysis of CTS' Board and CEO remuneration and experience, and whether company insiders have been buying stock.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.