Analyst Estimates: Here's What Brokers Think Of Augmedix, Inc. (NASDAQ:AUGX) After Its Third-Quarter Report
Augmedix, Inc. (NASDAQ:AUGX) defied analyst predictions to release its quarterly results, which were ahead of market expectations. Revenues beat expectations coming in atUS$12m, ahead of estimates by 2.9%. Statutory losses were somewhat smaller thanthe analysts expected, coming in at US$0.10 per share. 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 thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
See our latest analysis for Augmedix
Following the latest results, Augmedix's five analysts are now forecasting revenues of US$60.1m in 2024. This would be a sizeable 47% improvement in revenue compared to the last 12 months. Losses are predicted to fall substantially, shrinking 33% to US$0.33. Yet prior to the latest earnings, the analysts had been forecasting revenues of US$60.1m and losses of US$0.32 per share in 2024. So it's pretty clear consensus is mixed on Augmedix after the new consensus numbers; while the analysts held their revenue numbers steady, they also administered a moderate increase in per-share loss expectations.
The consensus price target held steady at US$7.38, seemingly implying that the higher forecast losses are not expected to have a long term impact on the company's valuation. 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. There are some variant perceptions on Augmedix, with the most bullish analyst valuing it at US$8.00 and the most bearish at US$6.00 per share. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.
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. It's clear from the latest estimates that Augmedix's rate of growth is expected to accelerate meaningfully, with the forecast 36% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 27% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 11% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Augmedix to grow faster than the wider industry.
The Bottom Line
The most important thing to take away is that the analysts increased their loss per share estimates for next year. 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$7.38, with the latest estimates not enough to have an impact on their price targets.
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. We have forecasts for Augmedix going out to 2024, and you can see them free on our platform here.
Don't forget that there may still be risks. For instance, we've identified 3 warning signs for Augmedix that 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.
