Sensus Healthcare, Inc. Just Beat Earnings Expectations: Here's What Analysts Think Will Happen Next

The investors in Sensus Healthcare, Inc.'s (NASDAQ:SRTS) will be rubbing their hands together with glee today, after the share price leapt 23% to US$3.88 in the week following its yearly results. It was overall a positive result, with revenues beating expectations by 2.1% to hit US$24m. Sensus Healthcare also reported a statutory profit of US$0.03, which was a nice improvement from the loss that the analysts were predicting. 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

Following the latest results, Sensus Healthcare's four analysts are now forecasting revenues of US$28.3m in 2024. This would be a solid 16% improvement in revenue compared to the last 12 months. Statutory per-share earnings are expected to be US$0.03, roughly flat on the last 12 months. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$28.7m and earnings per share (EPS) of US$0.052 in 2024. The analysts seem to have become more bearish following the latest results. While there were no changes to revenue forecasts, there was a pretty serious reduction to EPS estimates.

Despite cutting their earnings forecasts,the analysts have lifted their price target 19% to US$7.13, suggesting that these impacts are not expected to weigh on the stock's value in the long term. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Sensus Healthcare, with the most bullish analyst valuing it at US$8.00 and the most bearish at US$6.00 per share. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Sensus Healthcare is an easy business to forecast or the the analysts are all using similar assumptions.

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 clear from the latest estimates that Sensus Healthcare's rate of growth is expected to accelerate meaningfully, with the forecast 16% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 9.5% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 7.9% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Sensus Healthcare is expected to grow much faster than its industry.

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. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected 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 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.

And what about risks? Every company has them, and we've spotted 3 warning signs for Sensus Healthcare you should know about.

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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.