InspireMD, Inc. (NYSEMKT:NSPR) investors will be delighted, with the company turning in some strong numbers with its latest results. The results were impressive, with revenues of US$980k exceeding analyst forecasts by 145%, and statutory losses of US$0.06 were likewise much smaller than the analysts had forecast. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
Taking into account the latest results, the most recent consensus for InspireMD from dual analysts is for revenues of US$5.90m in 2021 which, if met, would be a sizeable 77% increase on its sales over the past 12 months. Per-share statutory losses are expected to explode, reaching US$0.18 per share. Before this earnings report, the analysts had been forecasting revenues of US$5.80m and earnings per share (EPS) of US$507,501 in 2021. So despite reconfirming their revenue estimates, the analysts are now forecasting a loss instead of a profit, which looks like a definite drop in sentiment following the latest results.
The consensus price target fell 37% to US$0.85per share, with the analysts clearly concerned by ballooning losses.
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 InspireMD's rate of growth is expected to accelerate meaningfully, with the forecast 77% revenue growth noticeably faster than its historical growth of 13%p.a. 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 10.0% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that InspireMD is expected to grow much faster than its industry.
The Bottom Line
The biggest low-light for us was that the forecasts for InspireMD dropped from profits to a loss next year. Fortunately, they also reconfirmed their revenue numbers, suggesting sales are tracking in line with expectations - and our data suggests that revenues are expected to grow faster than the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of InspireMD's future valuation.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have analyst estimates for InspireMD going out as far as 2023, and you can see them free on our platform here.
You should always think about risks though. Case in point, we've spotted 6 warning signs for InspireMD you should be aware of, and 2 of them shouldn't be ignored.
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