Adeia Inc. Earnings Missed Analyst Estimates: Here’s What Analysts Are Forecasting Now

It’s shaping up to be a tough period for Adeia Inc. (NASDAQ:ADEA), which a week ago released some disappointing quarterly results that could have a notable impact on how the market views the stock. Unfortunately, Adeia delivered a serious earnings miss. Revenues of US$80m were 19% below expectations, and statutory earnings per share of US$0.02 missed estimates by 80%. The analysts 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. With this in mind, we’ve gathered the latest statutory forecasts to see what the analysts are expecting for next year.

Trump has pledged to “unleash” American oil and gas and these 15 US stocks have developments that are poised to benefit.

Taking into account the latest results, the four analysts covering Adeia provided consensus estimates of US$428.7m revenue in 2027, which would reflect a perceptible 7.6% decline over the past 12 months. Statutory earnings per share are expected to dive 45% to US$0.58 in the same period. In the lead-up to this report, the analysts had been modelling revenues of US$451.1m and earnings per share (EPS) of US$0.92 in 2027. From this we can that sentiment has definitely become more bearish after the latest results, leading to lower revenue forecasts and a pretty serious reduction to earnings per share estimates.

Check out our latest analysis for Adeia

The consensus price target fell 11% to US$38.25, with the weaker earnings outlook clearly leading valuation estimates. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company’s valuation. There are some variant perceptions on Adeia, with the most bullish analyst valuing it at US$50.00 and the most bearish at US$30.00 per share. This shows there is still a bit of diversity in estimates, but analysts don’t appear to be totally split on the stock as though it might be a success or failure situation.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Adeia’s past performance and to peers in the same industry. Over the past five years, revenues have declined around 1.8% annually. Worse, forecasts are essentially predicting the decline to accelerate, with the estimate for an annualised 6.1% decline in revenue until the end of 2027. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue grow 17% per year. So while a broad number of companies are forecast to grow, unfortunately Adeia is expected to see its revenue affected worse than other companies in the industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse than the wider industry. 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.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for Adeia going out to 2028, and you can see them free on our platform here.

Plus, you should also learn about the 2 warning signs we’ve spotted with Adeia (including 1 which shouldn’t be ignored) .

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