Yahoo Finance Earnings Update: Treace Medical Concepts, Inc. (NASDAQ:TMCI) Just Reported Its Second-Quarter Results And Analysts Are Updating Their Forecasts
Treace Medical Concepts, Inc. (NASDAQ:TMCI) last week reported its latest quarterly results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. The results don't look great, especially considering that statutory losses grew 49% toUS$0.31 per share. Revenues of US$30m did beat expectations by 4.6%, but it looks like a bit of a cold comfort. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
See our latest analysis for Treace Medical Concepts
After the latest results, the four analysts covering Treace Medical Concepts are now predicting revenues of US$132.3m in 2022. If met, this would reflect a meaningful 16% improvement in sales compared to the last 12 months. Per-share losses are expected to explode, reaching US$0.90 per share. Before this earnings announcement, the analysts had been modelling revenues of US$131.1m and losses of US$0.67 per share in 2022. So it's pretty clear the analysts have mixed opinions on Treace Medical Concepts even after this update; although they reconfirmed their revenue numbers, it came at the cost of a sizeable expansion in per-share losses.
As a result, there was no major change to the consensus price target of US$26.75, with the analysts implicitly confirming that the business looks to be performing in line with expectations, despite higher forecast losses. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values Treace Medical Concepts at US$37.00 per share, while the most bearish prices it at US$23.00. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.
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. We would highlight that Treace Medical Concepts' revenue growth is expected to slow, with the forecast 35% annualised growth rate until the end of 2022 being well below the historical 47% growth over the last year. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 7.9% per year. Even after the forecast slowdown in growth, it seems obvious that Treace Medical Concepts is also expected to grow faster than the wider industry.
The Bottom Line
The most important thing to take away is that the analysts increased their loss per share estimates for next year. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at US$26.75, with the latest estimates not enough to have an impact on their price targets.
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 estimates - from multiple Treace Medical Concepts analysts - going out to 2024, and you can see them free on our platform here.
You still need to take note of risks, for example - Treace Medical Concepts has 2 warning signs we think you should be aware of.
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.
Join A Paid User Research Session
You’ll receive a US$30 Amazon Gift card for 1 hour of your time while helping us build better investing tools for the individual investors like yourself. Sign up here
