It's been a pretty great week for LENSAR, Inc. (NASDAQ:LNSR) shareholders, with its shares surging 16% to US$3.78 in the week since its latest quarterly results. It looks like the results were pretty good overall. While revenues of US$11m were in line with analyst predictions, statutory losses were much smaller than expected, with LENSAR losing US$0.19 per share. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
Taking into account the latest results, the consensus forecast from LENSAR's twin analysts is for revenues of US$50.8m in 2024. This reflects a solid 14% improvement in revenue compared to the last 12 months. Losses are forecast to narrow 5.7% to US$1.02 per share. Yet prior to the latest earnings, the analysts had been forecasting revenues of US$51.3m and losses of US$0.74 per share in 2024. While this year's revenue estimates held steady, there was also a considerable increase to loss per share expectations, suggesting the consensus has a bit of a mixed view on the stock.
With the increase in forecast losses for next year, it's perhaps no surprise to see that the average price target dipped 33% to US$8.00, with the analysts signalling that growing losses would be a definite concern.
Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. The analysts are definitely expecting LENSAR's growth to accelerate, with the forecast 19% annualised growth to the end of 2024 ranking favourably alongside historical growth of 12% per annum over the past three years. Compare this with other companies in the same industry, which are forecast to grow their revenue 8.1% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect LENSAR 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 LENSAR. 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 fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of LENSAR's future valuation.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At least one analyst has provided forecasts out to 2026, which can be seen for free on our platform here.
Don't forget that there may still be risks. For instance, we've identified 4 warning signs for LENSAR 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.