Here's What Analysts Are Forecasting For iRhythm Technologies, Inc. (NASDAQ:IRTC) After Its Annual Results

Shareholders might have noticed that iRhythm Technologies, Inc. (NASDAQ:IRTC) filed its full-year result this time last week. The early response was not positive, with shares down 8.0% to US$105 in the past week. It was a pretty bad result overall; while revenues were in line with expectations at US$493m, statutory losses exploded to US$4.04 per share. 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 iRhythm Technologies after the latest results.

Check out our latest analysis for iRhythm Technologies

Taking into account the latest results, the current consensus from iRhythm Technologies' twelve analysts is for revenues of US$581.2m in 2024. This would reflect a notable 18% increase on its revenue over the past 12 months. Losses are predicted to fall substantially, shrinking 43% to US$2.26. Yet prior to the latest earnings, the analysts had been forecasting revenues of US$581.0m and losses of US$2.24 per share in 2024.

As a result there was no major change to the consensus price target of US$133, 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. The most optimistic iRhythm Technologies analyst has a price target of US$165 per share, while the most pessimistic values it at US$110. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

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 can infer from the latest estimates that forecasts expect a continuation of iRhythm Technologies'historical trends, as the 18% annualised revenue growth to the end of 2024 is roughly in line with the 22% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 7.8% annually. So although iRhythm Technologies is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that the analysts reconfirmed their loss per share estimates for next year. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is 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. At Simply Wall St, we have a full range of analyst estimates for iRhythm Technologies going out to 2026, and you can see them free on our platform here..

Before you take the next step you should know about the 3 warning signs for iRhythm Technologies 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.