Analyst Estimates: Here's What Brokers Think Of CVRx, Inc. (NASDAQ:CVRX) After Its Second-Quarter Report

It's been a sad week for CVRx, Inc. (NASDAQ:CVRX), who've watched their investment drop 13% to US$6.94 in the week since the company reported its second-quarter result. Revenues were a bright spot, with US$14m in revenue arriving 2.8% ahead of expectations, although statutory earnings didn't fare nearly so well, recording a loss of US$0.57, some 9.5% below consensus predictions. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on CVRx after the latest results.

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After the latest results, the seven analysts covering CVRx are now predicting revenues of US$56.0m in 2025. If met, this would reflect a credible 2.5% improvement in revenue compared to the last 12 months. Losses are expected to hold steady at around US$2.03. Before this latest report, the consensus had been expecting revenues of US$56.1m and US$2.01 per share in losses.

Check out our latest analysis for CVRx

As a result there was no major change to the consensus price target of US$10.83, implying that the business is trading roughly in line with expectations despite ongoing losses. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values CVRx at US$14.00 per share, while the most bearish prices it at US$7.00. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

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 CVRx's revenue growth is expected to slow, with the forecast 5.0% annualised growth rate until the end of 2025 being well below the historical 36% 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 8.3% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than CVRx.

The Bottom Line

The most important thing to take away is that the analysts reconfirmed their loss per share estimates for next year. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that CVRx's revenue is expected to perform worse than the wider industry. The consensus price target held steady at US$10.83, with the latest estimates not enough to have an impact on their price targets.

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 estimates - from multiple CVRx analysts - going out to 2027, and you can see them free on our platform here.

And what about risks? Every company has them, and we've spotted 3 warning signs for CVRx 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.