908 Devices Inc. (NASDAQ:MASS) Analysts Are Pretty Bullish On The Stock After Recent Results

Explore 908 Devices's Fair Values from the Community and select yours

Shareholders might have noticed that 908 Devices Inc. (NASDAQ:MASS) filed its second-quarter result this time last week. The early response was not positive, with shares down 4.0% to US$6.54 in the past week. Revenues of US$13m beat expectations by a respectable 7.1%, although statutory losses per share increased. 908 Devices lost US$0.37, which was 102% more than what the analysts had included in their models. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

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Taking into account the latest results, the current consensus, from the four analysts covering 908 Devices, is for revenues of US$55.4m in 2025. This implies a definite 15% reduction in 908 Devices' revenue over the past 12 months. Losses are predicted to fall substantially, shrinking 59% to US$0.92. Yet prior to the latest earnings, the analysts had been forecasting revenues of US$54.3m and losses of US$0.68 per share in 2025. So it's pretty clear the analysts have mixed opinions on 908 Devices even after this update; although they reconfirmed their revenue numbers, it came at the cost of a sizeable expansion in per-share losses.

View our latest analysis for 908 Devices

Despite expectations of heavier losses next year,the analysts have lifted their price target 54% to US$10.00, perhaps implying these losses are not expected to be recurring over the long term. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. Currently, the most bullish analyst values 908 Devices at US$12.00 per share, while the most bearish prices it at US$8.00. 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.

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. We would highlight that revenue is expected to reverse, with a forecast 29% annualised decline to the end of 2025. That is a notable change from historical growth of 16% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 8.1% per year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - 908 Devices is expected to lag 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. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse 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. We have estimates - from multiple 908 Devices analysts - going out to 2027, and you can see them free on our platform here.

Don't forget that there may still be risks. For instance, we've identified 2 warning signs for 908 Devices 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.