RadNet, Inc. (NASDAQ:RDNT) First-Quarter Results: Here's What Analysts Are Forecasting For This Year

Investors in RadNet, Inc. (NASDAQ:RDNT) had a good week, as its shares rose 9.8% to close at US$60.34 following the release of its first-quarter results. The results don't look great, especially considering that statutory losses grew 257% toUS$0.50 per share. Revenues of US$471m did beat expectations by 6.4%, but it looks like a bit of a cold comfort. 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 RadNet after the latest results.

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After the latest results, the four analysts covering RadNet are now predicting revenues of US$1.96b in 2025. If met, this would reflect a modest 5.1% improvement in revenue compared to the last 12 months. Statutory losses are forecast to balloon 90% to US$0.045 per share. In the lead-up to this report, the analysts had been modelling revenues of US$1.93b and earnings per share (EPS) of US$0.30 in 2025. While the analysts have made no real change to their revenue estimates, we can see that the consensus is now modelling a loss next year - a clear dip in sentiment compared to the previous outlook of a profit.

See our latest analysis for RadNet

The consensus price target held steady at US$72.00, seemingly implying that the higher forecast losses are not expected to have a long term impact on the company'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. The most optimistic RadNet analyst has a price target of US$80.00 per share, while the most pessimistic values it at US$60.00. This is a very narrow spread of estimates, implying either that RadNet is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

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. It's pretty clear that there is an expectation that RadNet's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 6.8% growth on an annualised basis. This is compared to a historical growth rate of 11% over the past five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 6.9% annually. Factoring in the forecast slowdown in growth, it looks like RadNet is forecast to grow at about the same rate as the wider industry.

The Bottom Line

The biggest low-light for us was that the forecasts for RadNet dropped from profits to a loss next year. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. The consensus price target held steady at US$72.00, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for RadNet going out to 2026, and you can see them free on our platform here..

However, before you get too enthused, we've discovered 1 warning sign for RadNet that you should be aware of.

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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.