InMode Ltd. Just Recorded A 17% EPS Beat: Here's What Analysts Are Forecasting Next

InMode Ltd. (NASDAQ:INMD) investors will be delighted, with the company turning in some strong numbers with its latest results. InMode beat earnings, with revenues hitting US$130m, ahead of expectations, and statutory earnings per share outperforming analyst reckonings by a solid 17%. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

See our latest analysis for InMode

Following the latest results, InMode's six analysts are now forecasting revenues of US$444.2m in 2025. This would be a credible 4.8% improvement in revenue compared to the last 12 months. Per-share earnings are expected to ascend 12% to US$2.03. In the lead-up to this report, the analysts had been modelling revenues of US$450.6m and earnings per share (EPS) of US$1.98 in 2025. So the consensus seems to have become somewhat more optimistic on InMode's earnings potential following these results.

There's been no major changes to the consensus price target of US$20.83, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. 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 InMode analyst has a price target of US$27.00 per share, while the most pessimistic values it at US$16.00. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await InMode shareholders.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We would highlight that InMode's revenue growth is expected to slow, with the forecast 3.8% annualised growth rate until the end of 2025 being well below the historical 23% 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% per year. Factoring in the forecast slowdown in growth, it seems obvious that InMode is also expected to grow slower than other industry participants.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards InMode following these results. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that InMode's revenue is expected to perform worse than the wider industry. The consensus price target held steady at US$20.83, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on InMode. Long-term earnings power is much more important than next year's profits. We have forecasts for InMode going out to 2026, and you can see them free on our platform here.

You can also see our analysis of InMode's Board and CEO remuneration and experience, and whether company insiders have been buying stock.

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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.