Inspire Medical Systems, Inc. Just Recorded A 894% EPS Beat: Here's What Analysts Are Forecasting Next

Inspire Medical Systems, Inc. (NYSE:INSP) just released its latest quarterly results and things are looking bullish. It was overall a positive result, with revenues beating expectations by 2.8% to hit US$203m. Inspire Medical Systems also reported a statutory profit of US$0.60, which was an impressive 894% above what the analysts had forecast. 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.

See our latest analysis for Inspire Medical Systems

Taking into account the latest results, the current consensus from Inspire Medical Systems' 17 analysts is for revenues of US$950.1m in 2025. This would reflect a major 26% increase on its revenue over the past 12 months. Per-share earnings are expected to leap 73% to US$1.91. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$949.1m and earnings per share (EPS) of US$1.34 in 2025. There was no real change to the revenue estimates, but the analysts do seem more bullish on earnings, given the very substantial lift in earnings per share expectations following these results.

There's been no major changes to the consensus price target of US$238, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock'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. There are some variant perceptions on Inspire Medical Systems, with the most bullish analyst valuing it at US$270 and the most bearish at US$197 per share. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We would highlight that Inspire Medical Systems' revenue growth is expected to slow, with the forecast 20% annualised growth rate until the end of 2025 being well below the historical 44% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 8.2% per year. Even after the forecast slowdown in growth, it seems obvious that Inspire Medical Systems is also expected to grow faster than the wider industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Inspire Medical Systems' earnings potential next year. 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. The consensus price target held steady at US$238, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on Inspire Medical Systems. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Inspire Medical Systems going out to 2026, and you can see them free on our platform here..

It is also worth noting that we have found 2 warning signs for Inspire Medical Systems that you need to take into consideration.

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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.