Here's What Analysts Are Forecasting For PROCEPT BioRobotics Corporation (NASDAQ:PRCT) After Its Second-Quarter Results

PROCEPT BioRobotics Corporation (NASDAQ:PRCT) defied analyst predictions to release its quarterly results, which were ahead of market expectations. It looks like a positive result overall, with revenues of US$53m beating forecasts by 6.2%. Statutory losses of US$0.50 per share were 6.2% smaller than the analysts expected, likely helped along by the higher revenues. 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 PROCEPT BioRobotics after the latest results.

View our latest analysis for PROCEPT BioRobotics

Taking into account the latest results, the current consensus from PROCEPT BioRobotics' eight analysts is for revenues of US$217.0m in 2024. This would reflect a huge 23% increase on its revenue over the past 12 months. The loss per share is expected to ameliorate slightly, reducing to US$1.88. Yet prior to the latest earnings, the analysts had been forecasting revenues of US$213.7m and losses of US$1.93 per share in 2024. It looks like there's been a modest increase in sentiment in the recent updates, with the analysts becoming a bit more optimistic in their predictions for losses per share, even though the revenue numbers were unchanged.

There's been no major changes to the consensus price target of US$75.17, suggesting that reduced loss estimates are not enough to have a long-term positive impact on the stock's valuation. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values PROCEPT BioRobotics at US$80.00 per share, while the most bearish prices it at US$69.00. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting PROCEPT BioRobotics is an easy business to forecast or the the analysts are all using similar assumptions.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the PROCEPT BioRobotics' past performance and to peers in the same industry. The period to the end of 2024 brings more of the same, according to the analysts, with revenue forecast to display 51% growth on an annualised basis. That is in line with its 62% annual growth over the past three years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 8.2% annually. So although PROCEPT BioRobotics is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.

The Bottom Line

The most obvious conclusion is that the analysts made no changes to their forecasts for a loss next year. Happily, there were no major changes to revenue forecasts, with the business still 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 PROCEPT BioRobotics. 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 PROCEPT BioRobotics going out to 2026, and you can see them free on our platform here..

However, before you get too enthused, we've discovered 2 warning signs for PROCEPT BioRobotics that you should be aware of.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com