Last week, you might have seen that iRhythm Technologies, Inc. (NASDAQ:IRTC) released its quarterly result to the market. The early response was not positive, with shares down 8.2% to US$103 in the past week. The results don't look great, especially considering that statutory losses grew 51% toUS$1.47 per share. Revenues of US$132m did beat expectations by 2.7%, 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on iRhythm Technologies after the latest results.

See our latest analysis for iRhythm Technologies

Taking into account the latest results, the most recent consensus for iRhythm Technologies from twelve analysts is for revenues of US$583.8m in 2024. If met, it would imply a solid 14% increase on its revenue over the past 12 months. Losses are supposed to decline, shrinking 18% from last year to US$3.42. Before this earnings announcement, the analysts had been modelling revenues of US$580.8m and losses of US$2.92 per share in 2024. So it's pretty clear the analysts have mixed opinions on iRhythm Technologies even after this update; although they reconfirmed their revenue numbers, it came at the cost of a notable increase in per-share losses.

As a result, there was no major change to the consensus price target of US$138, with the analysts implicitly confirming that the business looks to be performing in line with expectations, despite higher forecast losses. 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. There are some variant perceptions on iRhythm Technologies, with the most bullish analyst valuing it at US$165 and the most bearish at US$122 per share. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await iRhythm Technologies shareholders.

Of course, another way to look at these forecasts is to place them into context against the industry itself. The period to the end of 2024 brings more of the same, according to the analysts, with revenue forecast to display 19% growth on an annualised basis. That is in line with its 21% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 8.1% per year. So although iRhythm Technologies is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.

The Bottom Line

The most important thing to note is the forecast of increased losses next year, suggesting all may not be well at iRhythm Technologies. 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$138, 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. We have forecasts for iRhythm Technologies 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 3 warning signs with iRhythm Technologies , 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.