Sensus Healthcare, Inc. (NASDAQ:SRTS) just released its second-quarter report and things are looking bullish. Statutory earnings performance was extremely strong, with revenue of US$12m beating expectations by 28% and earnings per share (EPS) of US$0.21, an impressive 65%ahead of expectations. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

View our latest analysis for Sensus Healthcare

Following the latest results, Sensus Healthcare's five analysts are now forecasting revenues of US$45.2m in 2022. This would be a solid 10% improvement in sales compared to the last 12 months. Statutory earnings per share are predicted to rise 2.2% to US$1.55. Before this earnings report, the analysts had been forecasting revenues of US$41.7m and earnings per share (EPS) of US$1.43 in 2022. So there seems to have been a moderate uplift in sentiment following the latest results, given the upgrades to both revenue and earnings per share forecasts for next year.

With these upgrades, we're not surprised to see that the analysts have lifted their price target 15% to US$16.50per share. 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. There are some variant perceptions on Sensus Healthcare, with the most bullish analyst valuing it at US$20.00 and the most bearish at US$14.00 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.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's clear from the latest estimates that Sensus Healthcare's rate of growth is expected to accelerate meaningfully, with the forecast 22% annualised revenue growth to the end of 2022 noticeably faster than its historical growth of 3.6% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 7.8% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Sensus Healthcare to grow faster than the wider industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Sensus Healthcare following these results. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

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 Sensus Healthcare going out to 2024, and you can see them free on our platform here..

You should always think about risks though. Case in point, we've spotted 4 warning signs for Sensus Healthcare you should be aware of, and 1 of them is potentially serious.

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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.