The Neuronetics, Inc. (NASDAQ:STIM) First-Quarter Results Are Out And Analysts Have Published New Forecasts

Shareholders in Neuronetics, Inc. (NASDAQ:STIM) had a terrible week, as shares crashed 28% to US$2.55 in the week since its latest quarterly results. It was a respectable set of results; while revenues of US$17m were in line with analyst predictions, statutory losses were 13% smaller than expected, with Neuronetics losing US$0.27 per share. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

View our latest analysis for Neuronetics

Taking into account the latest results, the current consensus from Neuronetics' four analysts is for revenues of US$79.1m in 2024. This would reflect a meaningful 8.1% increase on its revenue over the past 12 months. Losses are expected to hold steady at around US$0.92. Before this earnings announcement, the analysts had been modelling revenues of US$79.1m and losses of US$0.93 per share in 2024.

The consensus price target was unchanged at US$7.00, suggesting that the business - losses and all - is executing in line with estimates. 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. Currently, the most bullish analyst values Neuronetics at US$8.00 per share, while the most bearish prices it at US$6.00. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Neuronetics' past performance and to peers in the same industry. The analysts are definitely expecting Neuronetics' growth to accelerate, with the forecast 11% annualised growth to the end of 2024 ranking favourably alongside historical growth of 4.9% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 8.1% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Neuronetics is expected to grow much faster than its industry.

The Bottom Line

The most obvious conclusion is that the analysts made no changes to their forecasts for a loss next year. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

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

You should always think about risks though. Case in point, we've spotted 5 warning signs for Neuronetics 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.