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

Neuronetics, Inc. (NASDAQ:STIM) last week reported its latest third-quarter results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. Neuronetics reported revenues of US$37m, in line with expectations, but it unfortunately also reported (statutory) losses of US$0.13 per share, which were slightly larger than expected. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

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Following the latest results, Neuronetics' three analysts are now forecasting revenues of US$168.4m in 2026. This would be a sizeable 30% improvement in revenue compared to the last 12 months. Losses are predicted to fall substantially, shrinking 35% to US$0.42. Before this latest report, the consensus had been expecting revenues of US$168.8m and US$0.21 per share in losses. So it's pretty clear the analysts have mixed opinions on Neuronetics even after this update; although they reconfirmed their revenue numbers, it came at the cost of a very substantial increase in per-share losses.

View our latest analysis for Neuronetics

The consensus price target held steady at US$6.50, seemingly implying that the higher forecast losses are not expected to have a long term impact on the company's valuation. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. The most optimistic Neuronetics analyst has a price target of US$7.00 per share, while the most pessimistic values it at US$5.50. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's clear from the latest estimates that Neuronetics' rate of growth is expected to accelerate meaningfully, with the forecast 23% annualised revenue growth to the end of 2026 noticeably faster than its historical growth of 16% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 8.4% 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 important thing to note is the forecast of increased losses next year, suggesting all may not be well at Neuronetics. 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 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 said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Neuronetics analysts - going out to 2027, 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 Neuronetics (of which 2 make us uncomfortable!) 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.