LifeMD, Inc. Beat Analyst Profit Forecasts, And Analysts Have New Estimates

It's been a good week for LifeMD, Inc. (NASDAQ:LFMD) shareholders, because the company has just released its latest quarterly results, and the shares gained 9.7% to US$8.16. It was overall a positive result, with revenues beating expectations by 5.2% to hit US$66m. LifeMD also reported a statutory profit of US$0.01, which was a nice improvement from the loss that the analysts were predicting. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on LifeMD after the latest results.

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Following the latest results, LifeMD's nine analysts are now forecasting revenues of US$270.4m in 2025. This would be a decent 16% improvement in revenue compared to the last 12 months. Earnings are expected to improve, with LifeMD forecast to report a statutory profit of US$0.036 per share. Before this latest report, the consensus had been expecting revenues of US$268.8m and US$0.10 per share in losses. Although we saw no serious change to the revenue outlook, the analysts have definitely increased their earnings estimates, estimating a profit next year, compared to previous forecasts of a loss. So it seems like the consensus has become substantially more bullish on LifeMD.

See our latest analysis for LifeMD

The consensus price target was unchanged at US$12.44, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic LifeMD analyst has a price target of US$16.00 per share, while the most pessimistic values it at US$8.00. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

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. It's pretty clear that there is an expectation that LifeMD's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 21% growth on an annualised basis. This is compared to a historical growth rate of 36% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 10% annually. Even after the forecast slowdown in growth, it seems obvious that LifeMD is also expected 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 LifeMD to become profitable 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.

With that in mind, we wouldn't be too quick to come to a conclusion on LifeMD. Long-term earnings power is much more important than next year's profits. We have forecasts for LifeMD going out to 2027, and you can see them free on our platform here.

Plus, you should also learn about the 3 warning signs we've spotted with LifeMD (including 2 which are potentially serious) .

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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.