AirSculpt Technologies, Inc. Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now
AirSculpt Technologies, Inc. (NASDAQ:AIRS) last week reported its latest yearly results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. Things were not great overall, with a surprise (statutory) loss of US$0.08 per share on revenues of US$196m, even though the analysts had been expecting a profit. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
View our latest analysis for AirSculpt Technologies
Taking into account the latest results, the current consensus from AirSculpt Technologies' three analysts is for revenues of US$219.2m in 2024. This would reflect a solid 12% increase on its revenue over the past 12 months. AirSculpt Technologies is also expected to turn profitable, with statutory earnings of US$0.15 per share. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$221.5m and earnings per share (EPS) of US$0.21 in 2024. So there's definitely been a decline in sentiment after the latest results, noting the pretty serious reduction to new EPS forecasts.
The consensus price target held steady at US$8.25, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic AirSculpt Technologies analyst has a price target of US$10.00 per share, while the most pessimistic values it at US$7.00. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.
Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We would highlight that AirSculpt Technologies' revenue growth is expected to slow, with the forecast 12% annualised growth rate until the end of 2024 being well below the historical 29% p.a. growth over the last three years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 6.8% per year. So it's pretty clear that, while AirSculpt Technologies' revenue growth is expected to slow, it's still expected to grow faster than the industry itself.
The Bottom Line
The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for AirSculpt Technologies. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. The consensus price target held steady at US$8.25, with the latest estimates not enough to have an impact on their price targets.
With that in mind, we wouldn't be too quick to come to a conclusion on AirSculpt Technologies. Long-term earnings power is much more important than next year's profits. We have forecasts for AirSculpt Technologies going out to 2026, and you can see them free on our platform here.
You can also view our analysis of AirSculpt Technologies' balance sheet, and whether we think AirSculpt Technologies is carrying too much debt, for free on our platform here.
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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.
