Butterfly Network, Inc. (NYSE:BFLY) Analysts Are Pretty Bullish On The Stock After Recent Results

Butterfly Network, Inc. (NYSE:BFLY) just released its quarterly report and things are looking bullish. Revenues beat expectations coming in atUS$18m, ahead of estimates by 5.1%. Statutory losses were somewhat smaller thanthe analysts expected, coming in at US$0.10 per share. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Butterfly Network after the latest results.

See our latest analysis for Butterfly Network

Taking into account the latest results, the most recent consensus for Butterfly Network from dual analysts is for revenues of US$76.3m in 2024. If met, it would imply a solid 12% increase on its revenue over the past 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 27% to US$0.42. Yet prior to the latest earnings, the analysts had been forecasting revenues of US$72.9m and losses of US$0.45 per share in 2024. So there seems to have been a moderate uplift in analyst sentiment with the latest consensus release, given the upgrades to both revenue and loss per share forecasts for this year.

It will come as no surprise to learn thatthe analysts have increased their price target for Butterfly Network 13% to US$3.38on the back of these upgrades.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Butterfly Network's past performance and to peers in the same industry. The analysts are definitely expecting Butterfly Network's growth to accelerate, with the forecast 16% annualised growth to the end of 2024 ranking favourably alongside historical growth of 8.4% per annum over the past three years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 8.1% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Butterfly Network 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. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business 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 said, the long-term trajectory of the company's earnings is a lot more important than next year. At least one analyst has provided forecasts out to 2026, which can be seen for free on our platform here.

You should always think about risks though. Case in point, we've spotted 4 warning signs for Butterfly Network 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.