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

A week ago, LivaNova PLC (NASDAQ:LIVN) came out with a strong set of third-quarter numbers that could potentially lead to a re-rate of the stock. The company beat forecasts, with revenue of US$318m, some 5.9% above estimates, and statutory earnings per share (EPS) coming in at US$0.60, 109% ahead of expectations. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on LivaNova after the latest results.

View our latest analysis for LivaNova

Following the latest results, LivaNova's ten analysts are now forecasting revenues of US$1.31b in 2025. This would be an okay 5.7% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to surge 329% to US$1.87. In the lead-up to this report, the analysts had been modelling revenues of US$1.30b and earnings per share (EPS) of US$1.72 in 2025. So the consensus seems to have become somewhat more optimistic on LivaNova's earnings potential following these results.

The consensus price target was unchanged at US$69.00, 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. There are some variant perceptions on LivaNova, with the most bullish analyst valuing it at US$90.00 and the most bearish at US$53.00 per share. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. The analysts are definitely expecting LivaNova's growth to accelerate, with the forecast 4.5% annualised growth to the end of 2025 ranking favourably alongside historical growth of 3.3% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 8.2% per year. So it's clear that despite the acceleration in growth, LivaNova is expected to grow meaningfully slower than the industry average.

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 LivaNova following these results. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse 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 said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for LivaNova going out to 2026, and you can see them free on our platform here.

Plus, you should also learn about the 1 warning sign we've spotted with LivaNova .

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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.