Sanara MedTech Inc. (NASDAQ:SMTI) just released its latest quarterly results and things are looking bullish. Results overall were solid, with revenues arriving 4.7% better than analyst forecasts at US$22m. Higher revenues also resulted in substantially lower statutory losses which, at US$0.34 per share, were 4.7% smaller than the analyst expected. Following the result, the analyst has 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 analyst has changed their earnings models, following these results.

See our latest analysis for Sanara MedTech

After the latest results, the single analyst covering Sanara MedTech are now predicting revenues of US$99.1m in 2025. If met, this would reflect a huge 27% improvement in revenue compared to the last 12 months. Per-share losses are expected to explode, reaching US$1.18 per share. Yet prior to the latest earnings, the analyst had been forecasting revenues of US$96.2m and losses of US$1.17 per share in 2025.

The consensus price target fell 10% to US$44.00as the analyst signal that ongoing losses are likely to weigh on the stock price.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. It's pretty clear that there is an expectation that Sanara MedTech's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 21% growth on an annualised basis. This is compared to a historical growth rate of 40% over the past five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 8.2% per year. Even after the forecast slowdown in growth, it seems obvious that Sanara MedTech is also expected to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that the analyst reconfirmed their loss per share estimates for next year. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. The consensus price target fell measurably, with the analyst seemingly not reassured by the latest results, leading to a lower estimate of Sanara MedTech's future valuation.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have analyst estimates for Sanara MedTech going out as far as 2026, and you can see them free on our platform here.

You still need to take note of risks, for example - Sanara MedTech has 2 warning signs we think 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.