As you might know, Ubiquiti Inc. (NYSE:UI) last week released its latest third-quarter, and things did not turn out so great for shareholders. Ubiquiti missed analyst forecasts, with revenues of US$788m and statutory earnings per share (EPS) of US$3.86, falling short by 3.2% and 2.1% respectively. This is an important time for investors, as they can track a company's performance in its report, look at what expert is forecasting for next year, and see if there has been any change to expectations for the business. With this in mind, we've gathered the latest statutory forecasts to see what the analyst is expecting for next year.

Taking into account the latest results, the consensus forecast from Ubiquiti's one analyst is for revenues of US$3.69b in 2027. This reflects a solid 19% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to expand 19% to US$18.48. In the lead-up to this report, the analyst had been modelling revenues of US$3.74b and earnings per share (EPS) of US$19.16 in 2027. The analyst 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.

Despite cutting their earnings forecasts,the analyst has lifted their price target 9.6% to US$826, suggesting that these impacts are not expected to weigh on the stock's value in the long term.

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. The analyst is definitely expecting Ubiquiti's growth to accelerate, with the forecast 15% annualised growth to the end of 2027 ranking favourably alongside historical growth of 11% per annum over the past five years. Other similar companies in the industry (with analyst coverage) are also forecast to grow their revenue at 15% per year. Ubiquiti is expected to grow at about the same rate as its industry, so it's not clear that we can draw any conclusions from its growth relative to competitors.

The Bottom Line

The biggest concern is that the analyst reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Ubiquiti. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall 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 said, the long-term trajectory of the company's earnings is a lot more important than next year. At least one analyst has provided forecasts out to 2027, which can be seen for free on our platform here.

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.