Yahoo Finance PROCEPT BioRobotics Corporation (NASDAQ:PRCT) Just Reported And Analysts Have Been Lifting Their Price Targets
PROCEPT BioRobotics Corporation (NASDAQ:PRCT) just released its latest quarterly results and things are looking bullish. PROCEPT BioRobotics beat expectations with revenues of US$45m arriving 6.3% ahead of forecasts. The company also reported a statutory loss of US$0.51, 7.3% 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. 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 PROCEPT BioRobotics
Following the latest results, PROCEPT BioRobotics' seven analysts are now forecasting revenues of US$213.7m in 2024. This would be a sizeable 37% improvement in revenue compared to the last 12 months. The loss per share is expected to ameliorate slightly, reducing to US$1.94. Yet prior to the latest earnings, the analysts had been forecasting revenues of US$210.0m and losses of US$2.00 per share in 2024. It looks like there's been a modest increase in sentiment in the recent updates, with the analysts becoming a bit more optimistic in their predictions for losses per share, even though the revenue numbers were unchanged.
These new estimates led to the consensus price target rising 13% to US$65.00, with lower forecast losses suggesting things could be looking up for PROCEPT BioRobotics. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic PROCEPT BioRobotics analyst has a price target of US$72.00 per share, while the most pessimistic values it at US$55.00. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.
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. It's pretty clear that there is an expectation that PROCEPT BioRobotics' revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 52% growth on an annualised basis. This is compared to a historical growth rate of 65% over the past three years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 8.1% annually. Even after the forecast slowdown in growth, it seems obvious that PROCEPT BioRobotics is also expected to grow faster than the wider industry.
The Bottom Line
The most obvious conclusion is that the analysts made no changes to their forecasts for a loss 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. We have forecasts for PROCEPT BioRobotics going out to 2026, and you can see them free on our platform here.
Plus, you should also learn about the 3 warning signs we've spotted with PROCEPT BioRobotics .
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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.
