US$9.33 - That's What Analysts Think Stereotaxis, Inc. (NYSEMKT:STXS) Is Worth After These Results

Stereotaxis, Inc. (NYSEMKT:STXS) just released its yearly report and things are looking bullish. Stereotaxis beat expectations with revenues of US$27m arriving 3.0% ahead of forecasts. The company also reported a statutory loss of US$0.11, 8.3% smaller than was expected. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

View our latest analysis for Stereotaxis

After the latest results, the three analysts covering Stereotaxis are now predicting revenues of US$38.3m in 2021. If met, this would reflect a huge 44% improvement in sales compared to the last 12 months. Per-share losses are supposed to see a sharp uptick, reaching US$0.13. Before this earnings announcement, the analysts had been modelling revenues of US$38.2m and losses of US$0.11 per share in 2021. So it's pretty clear the analysts have mixed opinions on Stereotaxis even after this update; although they reconfirmed their revenue numbers, it came at the cost of a notable increase in per-share losses.

Although the analysts are now forecasting higher losses, the average price target rose 70% to US$5.50, which could indicate that these losses are expected to be "one-off", or are not anticipated to have a longer-term impact on the business. 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. The most optimistic Stereotaxis analyst has a price target of US$9.00 per share, while the most pessimistic values it at US$6.00. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Stereotaxis shareholders.

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. For example, we noticed that Stereotaxis' rate of growth is expected to accelerate meaningfully, with revenues forecast to grow 44%, well above its historical decline of 6.1% a year over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue grow 8.8% per year. Not only are Stereotaxis' revenues expected to improve, it seems that the analysts are also expecting it to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that the analysts increased 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 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 Simply Wall St, we have a full range of analyst estimates for Stereotaxis going out to 2025, and you can see them free on our platform here..

Before you take the next step you should know about the 3 warning signs for Stereotaxis that we have uncovered.

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This article by Simply Wall St is general in nature. 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.
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