Analysts Have Made A Financial Statement On Paragon 28, Inc.'s (NYSE:FNA) Third-Quarter Report

Paragon 28, Inc. (NYSE:FNA) investors will be delighted, with the company turning in some strong numbers with its latest results. It looks like a positive result overall, with revenues of US$62m beating forecasts by 2.9%. Statutory losses of US$0.15 per share were 2.9% smaller than the analysts expected, likely helped along by the higher revenues. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

See our latest analysis for Paragon 28

Taking into account the latest results, the consensus forecast from Paragon 28's six analysts is for revenues of US$291.6m in 2025. This reflects a decent 19% improvement in revenue compared to the last 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 31% to US$0.46. Before this latest report, the consensus had been expecting revenues of US$292.8m and US$0.47 per share in losses.

The consensus price target was unchanged at US$14.40, suggesting that the business - losses and all - is executing in line with estimates. 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 Paragon 28, with the most bullish analyst valuing it at US$20.00 and the most bearish at US$12.00 per share. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

Of course, another way to look at these forecasts is to place them into context against the industry itself. The period to the end of 2025 brings more of the same, according to the analysts, with revenue forecast to display 15% growth on an annualised basis. That is in line with its 19% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 8.2% annually. So although Paragon 28 is expected to maintain its revenue growth rate, it's definitely expected 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, 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 said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Paragon 28 analysts - going out to 2026, and you can see them free on our platform here.

However, before you get too enthused, we've discovered 3 warning signs for Paragon 28 (1 is significant!) 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.