This Analyst Just Made A Massive Upgrade To Their Pro-Dex, Inc. (NASDAQ:PDEX) Earnings Forecasts

Pro-Dex, Inc. (NASDAQ:PDEX) shareholders will have a reason to smile today, with the covering analyst making substantial upgrades to this year's statutory forecasts. Consensus estimates suggest investors could expect greatly increased statutory revenues and earnings per share, with the analyst modelling a real improvement in business performance. Pro-Dex has also found favour with investors, with the stock up an impressive 20% to US$49.55 over the past week. We'll be curious to see if these new estimates convince the market to lift the stock price higher still.

Following the upgrade, the most recent consensus for Pro-Dex from its single analyst is for revenues of US$61m in 2025 which, if met, would be an okay 7.4% increase on its sales over the past 12 months. Statutory earnings per share are presumed to leap 25% to US$2.00. Before this latest update, the analyst had been forecasting revenues of US$54m and earnings per share (EPS) of US$1.42 in 2025. So we can see there's been a pretty clear increase in analyst sentiment in recent times, with both revenues and earnings per share receiving a decent lift in the latest estimates.

Check out our latest analysis for Pro-Dex

With these upgrades, we're not surprised to see that the analyst has lifted their price target 73% to US$52.00 per share.

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 period to the end of 2025 brings more of the same, according to the analyst, with revenue forecast to display 10.0% growth on an annualised basis. That is in line with its 12% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 8.3% annually. So although Pro-Dex is expected to maintain its revenue growth rate, it's only growing at about the rate of the wider industry.

The Bottom Line

The most important thing to take away from this upgrade is that the analyst upgraded their earnings per share estimates for this year, expecting improving business conditions. They also upgraded their revenue forecasts, although the latest estimates suggest that Pro-Dex will grow in line with the overall market. Given that the consensus looks almost universally bullish, with a substantial increase to forecasts and a higher price target, Pro-Dex could be worth investigating further.

Still, the long-term prospects of the business are much more relevant than next year's earnings. At least one analyst has provided forecasts out to 2026, which can be seen for free on our platform here.

Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are upgrading their estimates. So you may also wish to search this free list of stocks with high insider ownership.

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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.