US$56.67 - That's What Analysts Think PROCEPT BioRobotics Corporation (NASDAQ:PRCT) Is Worth After These Results

The full-year results for PROCEPT BioRobotics Corporation (NASDAQ:PRCT) were released last week, making it a good time to revisit its performance. PROCEPT BioRobotics reported revenues of US$136m, in line with expectations, but it unfortunately also reported (statutory) losses of US$2.24 per share, which were slightly larger than expected. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

View our latest analysis for PROCEPT BioRobotics

Taking into account the latest results, the consensus forecast from PROCEPT BioRobotics' eight analysts is for revenues of US$210.1m in 2024. This reflects a substantial 54% improvement in revenue compared to the last 12 months. Losses are forecast to narrow 4.2% to US$2.01 per share. Before this latest report, the consensus had been expecting revenues of US$204.8m and US$1.86 per share in losses. Overall it looks as though the analysts were a bit mixed on the latest consensus updates. Although there was a nice uplift to revenue, the consensus also made a moderate increase in its losses per share forecasts.

It will come as a surprise to learn that the consensus price target rose 11% to US$56.67, with the analysts clearly more interested in growing revenue, even as losses intensify. 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. The most optimistic PROCEPT BioRobotics analyst has a price target of US$59.00 per share, while the most pessimistic values it at US$53.00. This is a very narrow spread of estimates, implying either that PROCEPT BioRobotics is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

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. It's pretty clear that there is an expectation that PROCEPT BioRobotics' revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 54% growth on an annualised basis. This is compared to a historical growth rate of 70% over the past three years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 7.8% annually. Even after the forecast slowdown in growth, it seems obvious that PROCEPT BioRobotics is also expected to grow faster than the wider industry.

The Bottom Line

The most important thing to note is the forecast of increased losses next year, suggesting all may not be well at PROCEPT BioRobotics. Happily, they also upgraded their revenue estimates, and are forecasting them to grow faster than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

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. We have estimates - from multiple PROCEPT BioRobotics analysts - going out to 2026, and you can see them free on our platform here.

Before you take the next step you should know about the 3 warning signs for PROCEPT BioRobotics that we have uncovered.

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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.