Shareholders in InspireMD, Inc. (NYSEMKT:NSPR) had a terrible week, as shares crashed 33% to US$0.64 in the week since its latest yearly results. Revenues were US$3.7m, and InspireMD was a dismal 13% short of estimates. This is an important time for investors, as they can track a company's performance in its report, look at what top analysts are forecasting for next year, and see if there has been any change to expectations for the business. We've gathered the most recent statutory forecasts to see whether analysts have changed their earnings models, following these results.
Taking into account the latest results, the current consensus from InspireMD's lone analyst is for revenues of US$8.00m in 2020, which would reflect a huge 115% increase on its sales over the past 12 months. Prior to the latest earnings, analysts were forecasting revenues of US$16.1m in 2020, and did not provide an EPS estimate. The consensus view seems to have become more pessimistic on InspireMD, noting the pretty serious reduction to revenue estimates following last week's results.
The average analyst price target fell 60% to US$2.00, with analysts clearly having become less optimistic about InspireMD's prospects following its latest earnings.
One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. It's clear from the latest estimates that InspireMD's rate of growth is expected to accelerate meaningfully, with forecast 115% revenue growth noticeably faster than its historical growth of 11%p.a. over the past five years. Compare this with other companies in the same market, which are forecast to grow their revenue 7.8% next year. It seems obvious that, while the growth outlook is brighter than the recent past, analysts also expect InspireMD to grow faster than the wider market.
The Bottom Line
The biggest takeaway for us from these new estimates is the bullish forecast for profits next year. Unfortunately analysts also downgraded their revenue estimates, although industry data suggests that InspireMD's revenues are expected to grow faster than the wider market. Analysts also downgraded their price target, suggesting that the latest news has led analysts to become more pessimistic about the intrinsic value of the business.
We have estimates for InspireMD from one covering analyst, and you can see them free on our platform here.
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