LENSAR, Inc. (NASDAQ:LNSR) Just Reported Earnings, And Analysts Cut Their Target Price
There's been a notable change in appetite for LENSAR, Inc. (NASDAQ:LNSR) shares in the week since its yearly report, with the stock down 13% to US$4.35. Revenues of US$42m were in line with expectations, although statutory losses per share were US$1.31, some 19% smaller than was expected. Earnings are an important time for investors, as they can track a company's performance, look at what the analyst is forecasting for next year, and see if there's been a change in sentiment towards the company. We've gathered the most recent statutory forecasts to see whether the analyst has changed their earnings models, following these results.
View our latest analysis for LENSAR
Taking into account the latest results, the current consensus from LENSAR's lone analyst is for revenues of US$52.0m in 2024. This would reflect a sizeable 23% increase on its revenue over the past 12 months. Losses are expected to be contained, narrowing 17% from last year to US$1.05. Before this latest report, the consensus had been expecting revenues of US$54.6m and US$0.74 per share in losses. While this year's revenue estimates dropped there was also a regrettable increase in loss per share expectations, suggesting the consensus has a bit of a mixed view on the stock.
The average price target fell 33% to US$8.00, implicitly signalling that lower earnings per share are a leading indicator for LENSAR's valuation.
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. The analyst is definitely expecting LENSAR's growth to accelerate, with the forecast 23% annualised growth to the end of 2024 ranking favourably alongside historical growth of 10% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 7.8% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that LENSAR is expected to grow much faster than its industry.
The Bottom Line
The most important thing to note is the forecast of increased losses next year, suggesting all may not be well at LENSAR. They also downgraded LENSAR's revenue estimates, but industry data suggests that it is expected to grow faster than the wider industry. Furthermore, the analyst also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.
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 analyst estimates for LENSAR going out as far as 2025, and you can see them free on our platform here.
It is also worth noting that we have found 4 warning signs for LENSAR that you need to take into consideration.
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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.
