US$8.19: That's What Analysts Think AirSculpt Technologies, Inc. (NASDAQ:AIRS) Is Worth After Its Latest Results

There's been a notable change in appetite for AirSculpt Technologies, Inc. (NASDAQ:AIRS) shares in the week since its third-quarter report, with the stock down 15% to US$5.58. Revenues came in at US$47m, in line with forecasts and the company reported a statutory loss of US$0.03 per share, roughly 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

See our latest analysis for AirSculpt Technologies

Following the latest results, AirSculpt Technologies' four analysts are now forecasting revenues of US$220.9m in 2024. This would be a solid 17% improvement in revenue compared to the last 12 months. AirSculpt Technologies is also expected to turn profitable, with statutory earnings of US$0.19 per share. In the lead-up to this report, the analysts had been modelling revenues of US$221.0m and earnings per share (EPS) of US$0.18 in 2024. So the consensus seems to have become somewhat more optimistic on AirSculpt Technologies' earnings potential following these results.

The consensus price target fell 5.8% to US$8.19, suggesting the increase in earnings forecasts was not enough to offset other the analysts concerns. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on AirSculpt Technologies, with the most bullish analyst valuing it at US$10.00 and the most bearish at US$6.00 per share. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

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. We would highlight that AirSculpt Technologies' revenue growth is expected to slow, with the forecast 13% annualised growth rate until the end of 2024 being well below the historical 32% p.a. growth over the last three years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 6.9% annually. So it's pretty clear that, while AirSculpt Technologies' revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around AirSculpt Technologies' earnings potential next year. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for AirSculpt Technologies going out to 2025, and you can see them free on our platform here.

Even so, be aware that AirSculpt Technologies is showing 1 warning sign in our investment analysis , you should know about...

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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.