US$42.67 - That's What Analysts Think AtriCure, Inc. (NASDAQ:ATRC) Is Worth After These Results

AtriCure, Inc. (NASDAQ:ATRC) defied analyst predictions to release its third-quarter results, which were ahead of market expectations. Results overall were credible, with revenues arriving 3.3% better than analyst forecasts at US$116m. Higher revenues also resulted in lower statutory losses, which were US$0.17 per share, some 3.3% smaller than the analysts expected. 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.

View our latest analysis for AtriCure

Taking into account the latest results, the current consensus from AtriCure's nine analysts is for revenues of US$522.8m in 2025. This would reflect a decent 17% increase on its revenue over the past 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 22% to US$0.62. Before this earnings announcement, the analysts had been modelling revenues of US$519.6m and losses of US$0.62 per share in 2025.

The average price target fell 7.0% to US$42.67, with the ongoing losses seemingly a concern for the analysts, despite the lack of real change to the earnings forecasts. 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 AtriCure analyst has a price target of US$60.00 per share, while the most pessimistic values it at US$26.00. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that AtriCure's revenue growth is expected to slow, with the forecast 13% annualised growth rate until the end of 2025 being well below the historical 17% 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 8.3% annually. Even after the forecast slowdown in growth, it seems obvious that AtriCure 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. Happily, there were no major changes to revenue forecasts, with the business still expected 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 said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for AtriCure going out to 2026, and you can see them free on our platform here..

Plus, you should also learn about the 2 warning signs we've spotted with AtriCure .

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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.