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Analysts Have Made A Financial Statement On iCAD, Inc.'s (NASDAQ:ICAD) Third-Quarter Report

Simply Wall St
·3 min read

iCAD, Inc. (NASDAQ:ICAD) just released its latest quarterly results and things are looking bullish. iCAD outperformed on both revenues and the expected loss per share, with revenues of US$7.1m beating estimates by 16%. Statutory losses were US$0.08, 26% smaller thanthe analysts expected. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

View our latest analysis for iCAD

earnings-and-revenue-growth
earnings-and-revenue-growth

Taking into account the latest results, the most recent consensus for iCAD from five analysts is for revenues of US$39.1m in 2021 which, if met, would be a sizeable 37% increase on its sales over the past 12 months. Losses are predicted to fall substantially, shrinking 78% to US$0.20. Before this latest report, the consensus had been expecting revenues of US$39.3m and US$0.19 per share in losses. So it's pretty clear consensus is mixed on iCAD after the new consensus numbers; while the analysts held their revenue numbers steady, they also administered a per-share loss expectations.

As a result, there was no major change to the consensus price target of US$14.70, with the analysts implicitly confirming that the business looks to be performing in line with expectations, despite higher forecast losses. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values iCAD at US$16.00 per share, while the most bearish prices it at US$13.50. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

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. For example, we noticed that iCAD's rate of growth is expected to accelerate meaningfully, with revenues forecast to grow 37%, well above its historical decline of 5.5% a year over the past five years. Compare this against analyst estimates for the wider industry, which suggest that (in aggregate) industry revenues are expected to grow 19% next year. So it looks like iCAD is expected to grow faster than its competitors, at least for a while.

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 sales are tracking in line with expectations - and our data suggests that revenues are expected to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

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 iCAD going out to 2024, and you can see them free on our platform here.

You should always think about risks though. Case in point, we've spotted 3 warning signs for iCAD you should be aware of.

This article by Simply Wall St is general in nature. 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com.