VirTra, Inc. Beat Revenue Forecasts By 15%: Here's What Analysts Are Forecasting Next

Shareholders of VirTra, Inc. (NASDAQ:VTSI) will be pleased this week, given that the stock price is up 12% to US$7.36 following its latest quarterly results. VirTra beat revenue forecasts by a solid 15% to hit US$7.5m. Statutory earnings per share came in at US$0.05, in line with expectations. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

See our latest analysis for VirTra

After the latest results, the dual analysts covering VirTra are now predicting revenues of US$36.1m in 2025. If met, this would reflect a notable 14% improvement in revenue compared to the last 12 months. Statutory earnings per share are forecast to fall 16% to US$0.43 in the same period. Before this earnings report, the analysts had been forecasting revenues of US$36.1m and earnings per share (EPS) of US$0.89 in 2025. So there's definitely been a decline in sentiment after the latest results, noting the large cut to new EPS forecasts.

It might be a surprise to learn that the consensus price target fell 36% to US$11.25, with the analysts clearly linking lower forecast earnings to the performance of the stock price.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We would highlight that VirTra's revenue growth is expected to slow, with the forecast 11% annualised growth rate until the end of 2025 being well below the historical 16% 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 4.4% annually. Even after the forecast slowdown in growth, it seems obvious that VirTra is also expected to grow faster than the wider industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for VirTra. 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 VirTra's future valuation.

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 VirTra going out as far as 2025, and you can see them free on our platform here.

We don't want to rain on the parade too much, but we did also find 2 warning signs for VirTra (1 is concerning!) that you need to be mindful 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.