The analysts covering Forrester Research, Inc. (NASDAQ:FORR) delivered a dose of negativity to shareholders today, by making a substantial revision to their statutory forecasts for this year. Both revenue and earnings per share (EPS) estimates were cut sharply as analysts factored in the latest outlook for the business, concluding that they were too optimistic previously.
Following the downgrade, the consensus from three analysts covering Forrester Research is for revenues of US$354m in 2026, implying a chunky 11% decline in sales compared to the last 12 months. Losses are predicted to fall substantially, shrinking 98% to US$0.15 per share. Previously, the analysts had been modelling revenues of US$396m and earnings per share (EPS) of US$0.41 in 2026. So we can see that the consensus has become notably more bearish on Forrester Research's outlook with these numbers, making a measurable cut to this year's revenue estimates. Furthermore, they expect the business to be loss-making this year, compared to their previous forecasts of a profit.
See our latest analysis for Forrester Research
The consensus price target fell 50% to US$6.00, implicitly signalling that lower earnings per share are a leading indicator for Forrester Research's valuation.
Of course, another way to look at these forecasts is to place them into context against the industry itself. Over the past five years, revenues have declined around 3.5% annually. Worse, forecasts are essentially predicting the decline to accelerate, with the estimate for an annualised 11% decline in revenue until the end of 2026. Compare this against analyst estimates for companies in the broader industry, which suggest that revenues (in aggregate) are expected to grow 6.4% annually. So while a broad number of companies are forecast to grow, unfortunately Forrester Research is expected to see its sales affected worse than other companies in the industry.
The Bottom Line
The most important thing to take away is that analysts are expecting Forrester Research to become unprofitable this year. Regrettably, they also downgraded their revenue estimates, and the latest forecasts imply the business will grow sales slower than the wider market. With a serious cut to this year's expectations and a falling price target, we wouldn't be surprised if investors were becoming wary of Forrester Research.
Still, the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Forrester Research analysts - going out to 2027, and you can see them free on our platform here.
Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are downgrading their estimates. So you may also wish to search this free list of stocks with high insider ownership.
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