Analysts Have Made A Financial Statement On electroCore, Inc.'s (NASDAQ:ECOR) Second-Quarter Report

Explore electroCore's Fair Values from the Community and select yours

One of the biggest stories of last week was how electroCore, Inc. (NASDAQ:ECOR) shares plunged 32% in the week since its latest second-quarter results, closing yesterday at US$4.62. Revenues were in line with expectations, at US$7.4m, while statutory losses ballooned to US$0.44 per share. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on electroCore after the latest results.

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Taking into account the latest results, the most recent consensus for electroCore from four analysts is for revenues of US$30.8m in 2025. If met, it would imply a decent 11% increase on its revenue over the past 12 months. Losses are forecast to narrow 6.7% to US$1.63 per share. Before this latest report, the consensus had been expecting revenues of US$30.5m and US$1.24 per share in losses. So it's pretty clear the analysts have mixed opinions on electroCore even after this update; although they reconfirmed their revenue numbers, it came at the cost of a regrettable increase in per-share losses.

See our latest analysis for electroCore

As a result, there was no major change to the consensus price target of US$21.40, with the analysts implicitly confirming that the business looks to be performing in line with expectations, despite higher forecast losses. 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. There are some variant perceptions on electroCore, with the most bullish analyst valuing it at US$25.20 and the most bearish at US$12.00 per share. 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.

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 electroCore's revenue growth is expected to slow, with the forecast 24% annualised growth rate until the end of 2025 being well below the historical 44% 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 8.2% annually. Even after the forecast slowdown in growth, it seems obvious that electroCore is also expected to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that the analysts increased their loss per share estimates for 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 no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple electroCore analysts - going out to 2027, and you can see them free on our platform here.

Before you take the next step you should know about the 4 warning signs for electroCore that we have uncovered.

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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.