Yahoo Finance Here's What Analysts Are Forecasting For Alphatec Holdings, Inc. (NASDAQ:ATEC) After Its First-Quarter Results
It's been a sad week for Alphatec Holdings, Inc. (NASDAQ:ATEC), who've watched their investment drop 20% to US$10.60 in the week since the company reported its first-quarter result. Revenues were a bright spot, with US$138m in revenue arriving 3.3% ahead of expectations, although statutory earnings didn't fare nearly so well, recording a loss of US$0.34, some 8.7% below consensus predictions. 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.
Check out our latest analysis for Alphatec Holdings
Taking into account the latest results, the most recent consensus for Alphatec Holdings from eleven analysts is for revenues of US$601.5m in 2024. If met, it would imply a notable 18% increase on its revenue over the past 12 months. Losses are expected to be contained, narrowing 18% from last year to US$1.13. Before this earnings announcement, the analysts had been modelling revenues of US$596.4m and losses of US$1.09 per share in 2024. Overall it looks as though the analysts were a bit mixed on the latest consensus updates. Although revenue forecasts held steady, the consensus also made a pronounced increase to its losses per share forecasts.
The consensus price target held steady at US$23.23, seemingly implying that the higher forecast losses are not expected to have a long term impact on the company's valuation. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Alphatec Holdings at US$32.00 per share, while the most bearish prices it at US$17.00. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Alphatec Holdings' past performance and to peers in the same industry. We would highlight that Alphatec Holdings' revenue growth is expected to slow, with the forecast 24% annualised growth rate until the end of 2024 being well below the historical 35% 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) 8.1% per year. So it's pretty clear that, while Alphatec Holdings' revenue growth is expected to slow, it's still expected to grow faster than the industry itself.
The Bottom Line
The most important thing to note is the forecast of increased losses next year, suggesting all may not be well at Alphatec Holdings. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at US$23.23, with the latest estimates not enough to have an impact on their price targets.
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 Alphatec Holdings 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 Alphatec Holdings (1 shouldn't be ignored!) 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.
