Forrester Q2 revenue falls, restarts stock buyback program
FORR•Analyst coverage and valuation
The one available analyst rating on the shares is "hold." The average consensus recommendation for the advertising & marketing peer group is "buy."
Wall Street's median 12-month price target for Forrester Research Inc is $6.00, about 41.5% below its July 29 closing price of $10.26. The stock recently traded at 12 times the next 12-month earnings, versus a P/E of 6 three months ago.
Q2 revenue and EPS declined year over year
Forrester's second-quarter revenue fell year over year, and adjusted EPS also declined from the prior year.
| Metric | Beat/Miss | Actual | Consensus Estimate |
|---|---|---|---|
| Q2 Revenue | Beat | $100.23 mln | $96.91 mln (2 Analysts) |
| Q2 EPS | $0.78 | ||
| Q2 Adjusted Net Income | Beat | $7.70 mln | $2.47 mln (1 Analyst) |
| Q2 Net Income | $15.25 mln | ||
| Q2 Pretax Profit | $2.91 mln |
Buyback program restarted as metrics stabilize
The company said it restarted its stock buyback program and plans to accelerate repurchases.
Forrester said accelerated adoption of Forrester AI contributed to stabilization of key metrics. Client and wallet retention rates improved year over year, which the company said supports its goal to drive contract value growth. It is also focusing on new AI-driven products and integrations, including with Microsoft Teams and Copilot.
