Cutera, Inc. (NASDAQ:CUTR) Just Reported And Analysts Have Been Lifting Their Price Targets
Cutera, Inc. (NASDAQ:CUTR) investors will be delighted, with the company turning in some strong numbers with its latest results. The results overall were pretty good, with revenues of US$39m exceeding expectations and statutory losses coming in at justUS$0.13 per share, some 72% below what the analysts had forecast. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
Check out our latest analysis for Cutera
Taking into account the latest results, the most recent consensus for Cutera from five analysts is for revenues of US$181.9m in 2021 which, if met, would be a huge 22% increase on its sales over the past 12 months. Losses are predicted to fall substantially, shrinking 70% to US$0.54. Before this latest report, the consensus had been expecting revenues of US$179.3m and US$0.81 per share in losses. While the revenue estimates were largely unchanged, sentiment seems to have improved, with the analysts upgrading revenues and making a losses per share in particular.
The average price target rose 12% to US$23.75, with the analysts signalling that the forecast reduction in losses would be a positive for the stock's valuation. 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 Cutera at US$28.00 per share, while the most bearish prices it at US$17.00. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Cutera shareholders.
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. The analysts are definitely expecting Cutera's growth to accelerate, with the forecast 22% growth ranking favourably alongside historical growth of 12% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 9.9% next year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Cutera to grow faster than the wider industry.
The Bottom Line
The most obvious conclusion is that the analysts made no changes to their forecasts for a loss next year. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster 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. At Simply Wall St, we have a full range of analyst estimates for Cutera going out to 2023, and you can see them free on our platform here..
Before you take the next step you should know about the 3 warning signs for Cutera that we have uncovered.
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.
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