Shareholders will be ecstatic, with their stake up 27% over the past week following Butterfly Network, Inc.'s (NYSE:BFLY) latest full-year results. The statutory results were not great - while revenues of US$66m were in line with expectations,Butterfly Network lost US$0.65 a share in the process. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
Taking into account the latest results, the current consensus from Butterfly Network's twin analysts is for revenues of US$72.9m in 2024. This would reflect a decent 11% increase on its revenue over the past 12 months. Losses are predicted to fall substantially, shrinking 30% to US$0.45. Before this earnings announcement, the analysts had been modelling revenues of US$74.9m and losses of US$0.49 per share in 2024. It looks like there's been a modest increase in sentiment in the recent updates, with the analysts becoming a bit more optimistic in their predictions for losses per share, even though the revenue numbers fell somewhat.
There was a decent 13% increase in the price target to US$3.38, with the analysts clearly signalling that the expected reduction in losses is a positive, despite a weaker revenue outlook.
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 Butterfly Network's revenue growth is expected to slow, with the forecast 11% annualised growth rate until the end of 2024 being well below the historical 23% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 7.8% annually. Even after the forecast slowdown in growth, it seems obvious that Butterfly Network is also expected to grow faster than the wider industry.
The Bottom Line
The most obvious conclusion is that the analysts made no changes to their forecasts for a loss next year. Regrettably, they also downgraded their revenue estimates, but the latest forecasts still imply the business will grow faster than the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have analyst estimates for Butterfly Network going out as far as 2025, and you can see them free on our platform here.
Don't forget that there may still be risks. For instance, we've identified 4 warning signs for Butterfly Network (1 can't be ignored) 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.