Results: Sensus Healthcare, Inc. Exceeded Expectations And The Consensus Has Updated Its Estimates

Shareholders of Sensus Healthcare, Inc. (NASDAQ:SRTS) will be pleased this week, given that the stock price is up 19% to US$8.41 following its latest third-quarter results. In addition to smashing expectations with revenues of US$8.8m, Sensus Healthcare delivered a surprise statutory profit of US$0.07 per share, a notable improvement compared to analyst expectations of a loss. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

See our latest analysis for Sensus Healthcare

Taking into account the latest results, the current consensus from Sensus Healthcare's four analysts is for revenues of US$47.1m in 2025. This would reflect a solid 14% increase on its revenue over the past 12 months. Per-share earnings are expected to climb 12% to US$0.64. Before this earnings report, the analysts had been forecasting revenues of US$45.2m and earnings per share (EPS) of US$0.58 in 2025. There's been a pretty noticeable increase in sentiment, with the analysts upgrading revenues and making a substantial gain in earnings per share in particular.

It will come as no surprise to learn that the analysts have increased their price target for Sensus Healthcare 7.1% to US$11.25on the back of these upgrades. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. Currently, the most bullish analyst values Sensus Healthcare at US$14.00 per share, while the most bearish prices it at US$10.00. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

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. We would highlight that Sensus Healthcare's revenue growth is expected to slow, with the forecast 11% annualised growth rate until the end of 2025 being well below the historical 15% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 8.2% per year. So it's pretty clear that, while Sensus Healthcare's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Sensus Healthcare following these results. Happily, they also upgraded their revenue estimates, and are forecasting them to grow faster than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

With that in mind, we wouldn't be too quick to come to a conclusion on Sensus Healthcare. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Sensus Healthcare analysts - going out to 2026, and you can see them free on our platform here.

Plus, you should also learn about the 1 warning sign we've spotted with Sensus Healthcare .

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.