Yahoo Finance Neuronetics, Inc. (NASDAQ:STIM) First-Quarter Results: Here's What Analysts Are Forecasting For This Year
Shareholders in Neuronetics, Inc. (NASDAQ:STIM) had a terrible week, as shares crashed 28% to US$2.55 in the week since its latest quarterly results. It was a respectable set of results; while revenues of US$17m were in line with analyst predictions, statutory losses were 13% smaller than expected, with Neuronetics losing US$0.27 per share. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
Check out our latest analysis for Neuronetics
Following the latest results, Neuronetics' four analysts are now forecasting revenues of US$79.1m in 2024. This would be a meaningful 8.1% improvement in revenue compared to the last 12 months. Losses are expected to hold steady at around US$0.92. Before this earnings announcement, the analysts had been modelling revenues of US$79.1m and losses of US$0.93 per share in 2024.
The consensus price target was unchanged at US$7.00, suggesting that the business - losses and all - is executing in line with 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. The most optimistic Neuronetics analyst has a price target of US$8.00 per share, while the most pessimistic values it at US$6.00. This is a very narrow spread of estimates, implying either that Neuronetics is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.
Of course, another way to look at these forecasts is to place them into context against the industry itself. The analysts are definitely expecting Neuronetics' growth to accelerate, with the forecast 11% annualised growth to the end of 2024 ranking favourably alongside historical growth of 4.9% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 8.1% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Neuronetics is expected to grow much faster than its industry.
The Bottom Line
The most obvious conclusion is that the analysts made no changes to their forecasts for a loss 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$7.00, with the latest estimates not enough to have an impact on their price targets.
Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for Neuronetics going out to 2026, and you can see them free on our platform here..
That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 5 warning signs with Neuronetics , and understanding them should be part of your investment process.
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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.
