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CVRx, Inc. (NASDAQ:CVRX) Second-Quarter Results Just Came Out: Here's What Analysts Are Forecasting For This Year

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Shareholders will be ecstatic, with their stake up 22% over the past week following CVRx, Inc.'s (NASDAQ:CVRX) latest second-quarter results. It looks like a positive result overall, with revenues of US$5.0m beating forecasts by 7.1%. Statutory losses of US$0.54 per share were roughly in line with 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 collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

View our latest analysis for CVRx

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

Taking into account the latest results, the most recent consensus for CVRx from five analysts is for revenues of US$21.6m in 2022 which, if met, would be a major 34% increase on its sales over the past 12 months. Per-share losses are supposed to see a sharp uptick, reaching US$2.15. Yet prior to the latest earnings, the analysts had been forecasting revenues of US$21.2m and losses of US$2.14 per share in 2022.

There were no major changes to the US$13.25consensus price target despite the higher revenue estimates, with the analysts seeming to believe that ongoing losses have a larger impact on the valuation than growing sales. 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 CVRx at US$16.00 per share, while the most bearish prices it at US$10.00. 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 CVRx shareholders.

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 can infer from the latest estimates that forecasts expect a continuation of CVRx'shistorical trends, as the 79% annualised revenue growth to the end of 2022 is roughly in line with the 78% annual revenue growth over the past year. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 7.8% annually. So although CVRx is expected to maintain its revenue growth rate, it's definitely expected 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, they also upgraded their revenue estimates, and are forecasting revenues 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 estimates - from multiple CVRx analysts - going out to 2024, and you can see them free on our platform here.

Before you take the next step you should know about the 1 warning sign for CVRx that we have uncovered.

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

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.

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