One of the biggest stories of last week was how Sensus Healthcare, Inc. (NASDAQ:SRTS) shares plunged 29% in the week since its latest yearly results, closing yesterday at US$5.84. It was a pretty mixed result, with revenues beating expectations to hit US$42m. Statutory earnings fell 4.7% short of analyst forecasts, reaching US$0.41 per share. 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've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

See our latest analysis for Sensus Healthcare

Following the latest results, Sensus Healthcare's four analysts are now forecasting revenues of US$43.2m in 2025. This would be a modest 3.2% improvement in revenue compared to the last 12 months. Statutory earnings per share are expected to dive 23% to US$0.31 in the same period. In the lead-up to this report, the analysts had been modelling revenues of US$49.3m and earnings per share (EPS) of US$0.64 in 2025. Indeed, we can see that the analysts are a lot more bearish about Sensus Healthcare's prospects following the latest results, administering a real cut to revenue estimates and slashing their EPS estimates to boot.

What's most unexpected is that the consensus price target rose 22% to US$12.80, strongly implying the downgrade to forecasts is not expected to be more than a temporary blip. 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 Sensus Healthcare at US$18.00 per share, while the most bearish prices it at US$10.00. 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.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that Sensus Healthcare's revenue growth is expected to slow, with the forecast 3.2% annualised growth rate until the end of 2025 being well below the historical 17% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 7.8% annually. Factoring in the forecast slowdown in growth, it seems obvious that Sensus Healthcare is also expected to grow slower than other industry participants.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Sensus Healthcare. On the negative side, they also downgraded their revenue estimates, and 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.

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 forecasts for Sensus Healthcare going out to 2027, and you can see them free on our platform here.

And what about risks? Every company has them, and we've spotted 2 warning signs for Sensus Healthcare (of which 1 is a bit unpleasant!) 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.