Revenue Beat: Sensus Healthcare, Inc. Beat Analyst Estimates By 5.6%

Shareholders in Sensus Healthcare, Inc. (NASDAQ:SRTS) had a terrible week, as shares crashed 29% to US$5.84 in the week since its latest annual results. Sensus Healthcare beat revenue expectations by 5.6%, at US$42m. Statutory earnings per share (EPS) came in at US$0.41, some 4.7% short of analyst estimates. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

View our latest analysis for Sensus Healthcare

Taking into account the latest results, the most recent consensus for Sensus Healthcare from four analysts is for revenues of US$43.2m in 2025. If met, it would imply a satisfactory 3.2% increase on its revenue over the past 12 months. Statutory earnings per share are forecast to tumble 23% to US$0.31 in the same period. In the lead-up to this report, the analysts had been modelling revenues of US$49.3m and earnings per share (EPS) of US$0.64 in 2025. Indeed, we can see that the analysts are a lot more bearish about Sensus Healthcare's prospects following the latest results, administering a real cut to revenue estimates and slashing their EPS estimates to boot.

The average price target climbed 22% to US$12.80despite the reduced earnings forecasts, suggesting that this earnings impact could be a positive for the stock, once it passes. 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. The most optimistic Sensus Healthcare analyst has a price target of US$18.00 per share, while the most pessimistic values it at US$10.00. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. It's pretty clear that there is an expectation that Sensus Healthcare's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 3.2% growth on an annualised basis. This is compared to a historical growth rate of 17% over the past five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 7.8% annually. Factoring in the forecast slowdown in growth, it seems obvious that Sensus Healthcare is also expected to grow slower than other industry participants.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Sensus Healthcare. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse 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.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for Sensus Healthcare going out to 2027, and you can see them free on our platform here..

That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 2 warning signs with Sensus Healthcare (at least 1 which is concerning) , and understanding these should be part of your investment process.

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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.