Butterfly Network, Inc. (NYSE:BFLY) Just Reported And Analysts Have Been Lifting Their Price Targets

As you might know, Butterfly Network, Inc. (NYSE:BFLY) just kicked off its latest third-quarter results with some very strong numbers. It looks like a positive result overall, with revenues of US$21m beating forecasts by 8.2%. Statutory losses of US$0.08 per share were 8.2% smaller than the analysts expected, likely helped along by the higher revenues. 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.

See our latest analysis for Butterfly Network

Taking into account the latest results, the current consensus from Butterfly Network's three analysts is for revenues of US$95.3m in 2025. This would reflect a substantial 25% 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$0.34. Before this latest report, the consensus had been expecting revenues of US$91.7m and US$0.39 per share in losses. So it seems there's been a definite increase in optimism about Butterfly Network's future following the latest consensus numbers, with a favorable reduction in the loss per share forecasts in particular.

The consensus price target rose 8.3% to US$3.25, with the analysts encouraged by the higher revenue and lower forecast losses for next year. 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 Butterfly Network at US$3.75 per share, while the most bearish prices it at US$3.00. 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.

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. The analysts are definitely expecting Butterfly Network's growth to accelerate, with the forecast 20% annualised growth to the end of 2025 ranking favourably alongside historical growth of 13% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 8.3% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Butterfly Network to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that the analysts reconfirmed their loss per share estimates for next year. Happily, they also upgraded their revenue estimates, and are forecasting them to grow faster than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

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 Butterfly Network going out to 2026, and you can see them free on our platform here..

Don't forget that there may still be risks. For instance, we've identified 3 warning signs for Butterfly Network that 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.