Shareholders of Nephros, Inc. (NASDAQ:NEPH) will be pleased this week, given that the stock price is up 10% to US$1.61 following its latest third-quarter results. It looks like a credible result overall - although revenues of US$3.5m were what the analyst expected, Nephros surprised by delivering a statutory profit of US$0.02 per share, instead of the previously forecast loss. This is an important time for investors, as they can track a company's performance in its report, look at what expert is forecasting for next year, and see if there has been any change to expectations for the business. With this in mind, we've gathered the latest statutory forecasts to see what the analyst is expecting for next year.

Check out our latest analysis for Nephros

Taking into account the latest results, the current consensus from Nephros' solitary analyst is for revenues of US$15.1m in 2025. This would reflect a meaningful 12% increase on its revenue over the past 12 months. Nephros is also expected to turn profitable, with statutory earnings of US$0.02 per share. Before this earnings report, the analyst had been forecasting revenues of US$15.0m and earnings per share (EPS) of US$0.04 in 2025. So there's definitely been a decline in sentiment after the latest results, noting the pretty serious reduction to new EPS forecasts.

Althoughthe analyst has revised their earnings forecasts for next year, they've also lifted the consensus price target 58% to US$4.75, suggesting the revised estimates are not indicative of a weaker long-term future for the business.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We can infer from the latest estimates that forecasts expect a continuation of Nephros'historical trends, as the 9.2% annualised revenue growth to the end of 2025 is roughly in line with the 8.8% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 3.2% annually. So although Nephros is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.

The Bottom Line

The biggest concern is that the analyst reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Nephros. 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 analyst clearly feeling that the intrinsic value of the business is improving.

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. At least one analyst has provided forecasts out to 2026, which can be seen for free on our platform here.

And what about risks? Every company has them, and we've spotted 1 warning sign for Nephros you should know about.

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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.