LivaNova PLC Beat Analyst Estimates: See What The Consensus Is Forecasting For This Year

It's been a mediocre week for LivaNova PLC (NASDAQ:LIVN) shareholders, with the stock dropping 15% to US$40.93 in the week since its latest yearly results. It looks like a credible result overall - although revenues of US$1.3b were what the analysts expected, LivaNova surprised by delivering a (statutory) profit of US$1.16 per share, an impressive 82% above what was forecast. 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. 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 LivaNova

Taking into account the latest results, the consensus forecast from LivaNova's nine analysts is for revenues of US$1.29b in 2025. This reflects an okay 3.1% improvement in revenue compared to the last 12 months. Per-share earnings are expected to jump 81% to US$2.10. In the lead-up to this report, the analysts had been modelling revenues of US$1.31b and earnings per share (EPS) of US$1.89 in 2025. Although the revenue estimates have not really changed, we can see there's been a nice gain to earnings per share expectations, suggesting that the analysts have become more bullish after the latest result.

The average the analysts price target fell 7.9% to US$63.40, suggesting thatthe analysts have other concerns, and the improved earnings per share outlook was not enough to allay them. 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. There are some variant perceptions on LivaNova, with the most bullish analyst valuing it at US$80.00 and the most bearish at US$53.00 per share. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

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 LivaNova's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 3.1% growth on an annualised basis. This is compared to a historical growth rate of 4.4% 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 7.8% per year. Factoring in the forecast slowdown in growth, it seems obvious that LivaNova is also expected to grow slower than other industry participants.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around LivaNova's earnings potential next year. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that LivaNova's revenue is expected to perform worse than the wider industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

With that in mind, we wouldn't be too quick to come to a conclusion on LivaNova. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for LivaNova going out to 2027, and you can see them free on our platform here..

You should always think about risks though. Case in point, we've spotted 1 warning sign for LivaNova you should be aware of.

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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.