As you might know, electroCore, Inc. (NASDAQ:ECOR) just kicked off its latest third-quarter results with some very strong numbers. Revenues and losses per share were both better than expected, with revenues of US$1.1m leading estimates by 7.2%. Statutory losses were smaller than the analystsexpected, 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on electroCore after the latest results.
Taking into account the latest results, the most recent consensus for electroCore from seven analysts is for revenues of US$7.59m in 2021 which, if met, would be a substantial 134% increase on its sales over the past 12 months. Losses are predicted to fall substantially, shrinking 35% to US$0.48. Yet prior to the latest earnings, the analysts had been forecasting revenues of US$7.86m and losses of US$0.48 per share in 2021.
The consensus price target was broadly unchanged at US$3.75, implying that the business is performing roughly in line with expectations, despite a downwards adjustment to forecast sales next year. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values electroCore at US$5.00 per share, while the most bearish prices it at US$3.00. 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 electroCore shareholders.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the electroCore's past performance and to peers in the same industry. The analysts are definitely expecting electroCore's growth to accelerate, with the forecast 134% growth ranking favourably alongside historical growth of 56% per annum over the past three years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 10.0% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect electroCore to grow faster than the wider industry.
The Bottom Line
The most important thing to take away is that the analysts reconfirmed their loss per share estimates for next year. They also downgraded their revenue estimates, although industry data suggests that electroCore's 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. At Simply Wall St, we have a full range of analyst estimates for electroCore 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 6 warning signs for electroCore you should be aware of, and 2 of them are a bit concerning.
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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