Delcath Systems, Inc. Beat Analyst Estimates: See What The Consensus Is Forecasting For This Year

A week ago, Delcath Systems, Inc. (NASDAQ:DCTH) came out with a strong set of first-quarter numbers that could potentially lead to a re-rate of the stock. The company beat forecasts, with revenue of US$20m, some 2.9% above estimates, and statutory earnings per share (EPS) coming in at US$0.03, 100% ahead of expectations. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

Our free stock report includes 1 warning sign investors should be aware of before investing in Delcath Systems. Read for free now.

Taking into account the latest results, the consensus forecast from Delcath Systems' six analysts is for revenues of US$94.5m in 2025. This reflects a major 75% improvement in revenue compared to the last 12 months. Delcath Systems is also expected to turn profitable, with statutory earnings of US$0.028 per share. Before this latest report, the consensus had been expecting revenues of US$83.5m and US$0.14 per share in losses. It looks like there's been a definite improvement in business conditions, with a revenue upgrade expected to lead to profitability sooner than previously forecast.

View our latest analysis for Delcath Systems

Despite these upgrades,the analysts have not made any major changes to their price target of US$23.00, suggesting that the higher estimates are not likely to have a long term impact on what the stock is worth. 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 Delcath Systems analyst has a price target of US$25.00 per share, while the most pessimistic values it at US$21.00. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Delcath Systems is an easy business to forecast or the the analysts are all using similar assumptions.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Delcath Systems' past performance and to peers in the same industry. It's clear from the latest estimates that Delcath Systems' rate of growth is expected to accelerate meaningfully, with the forecast 112% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 70% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 8.2% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Delcath Systems to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that there's been a clear step-change in belief around the business' prospects, with the analysts now expecting Delcath Systems to become profitable next year. Happily, they also upgraded their revenue estimates, and are forecasting them to grow faster than the wider industry. The consensus price target held steady at US$23.00, with the latest estimates not enough to have an impact on their price targets.

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 Delcath Systems going out to 2027, and you can see them free on our platform here..

You still need to take note of risks, for example - Delcath Systems has 1 warning sign we think you should be aware of.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.