A week ago, RxSight, Inc. (NASDAQ:RXST) came out with a strong set of quarterly numbers that could potentially lead to a re-rate of the stock. Revenues beat expectations coming in atUS$30m, ahead of estimates by 7.1%. Statutory losses were somewhat smaller thanthe analysts expected, coming in at US$0.25 per share. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

Check out our latest analysis for RxSight

Taking into account the latest results, the most recent consensus for RxSight from eight analysts is for revenues of US$135.2m in 2024. If met, it would imply a sizeable 34% increase on its revenue over the past 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 32% to US$0.82. Before this earnings announcement, the analysts had been modelling revenues of US$131.6m and losses of US$0.98 per share in 2024. So it seems there's been a definite increase in optimism about RxSight's future following the latest consensus numbers, with a notable improvement in the loss per share forecasts in particular.

It will come as no surprise to learn thatthe analysts have increased their price target for RxSight 16% to US$72.75on the back of these upgrades. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic RxSight analyst has a price target of US$75.00 per share, while the most pessimistic values it at US$68.00. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting RxSight is an easy business to forecast or the the analysts are all using similar assumptions.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's pretty clear that there is an expectation that RxSight's revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 47% growth on an annualised basis. This is compared to a historical growth rate of 60% over the past three years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 8.1% annually. Even after the forecast slowdown in growth, it seems obvious that RxSight is also expected to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that the analysts reconfirmed their loss per share estimates for next year. Happily, they also upgraded their revenue estimates, and are forecasting them 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.

With that in mind, we wouldn't be too quick to come to a conclusion on RxSight. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for RxSight going out to 2026, and you can see them free on our platform here..

However, before you get too enthused, we've discovered 2 warning signs for RxSight that you should be aware of.

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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.