Nutex Health Inc. (NASDAQ:NUTX) Just Reported, And Analysts Assigned A US$2.75 Price Target

The analysts might have been a bit too bullish on Nutex Health Inc. (NASDAQ:NUTX), given that the company fell short of expectations when it released its second-quarter results last week. It was a pretty negative result overall, with revenues of US$59m missing analyst predictions by 5.0%. Worse, the business reported a statutory loss of US$0.01 per share, much larger than the analysts had forecast prior to the result. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

View our latest analysis for Nutex Health

Taking into account the latest results, the current consensus from Nutex Health's twin analysts is for revenues of US$246.1m in 2023. This would reflect a sizeable 25% increase on its revenue over the past 12 months. Losses are predicted to fall substantially, shrinking 95% to US$0.03. Yet prior to the latest earnings, the analysts had been forecasting revenues of US$258.2m and losses of US$0.025 per share in 2023. While this year's revenue estimates dropped there was also a considerable increase in loss per share expectations, suggesting the consensus has a bit of a mixed view on the stock.

The average price target fell 8.3% to US$2.75, implicitly signalling that lower earnings per share are a leading indicator for Nutex Health's valuation.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. One thing stands out from these estimates, which is that Nutex Health is forecast to grow faster in the future than it has in the past, with revenues expected to display 56% annualised growth until the end of 2023. If achieved, this would be a much better result than the 38% annual decline over the past year. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 7.0% annually. So it looks like Nutex Health is expected to grow faster than its competitors, at least for a while.

The Bottom Line

The most important thing to note is the forecast of increased losses next year, suggesting all may not be well at Nutex Health. Regrettably, they also downgraded their revenue estimates, but the latest forecasts still imply the business will grow faster 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 said, the long-term trajectory of the company's earnings is a lot more important than next year. At least one analyst has provided forecasts out to 2024, which can be seen for free on our platform here.

And what about risks? Every company has them, and we've spotted 3 warning signs for Nutex Health you should know about.

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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.