RxSight, Inc. (NASDAQ:RXST) Released Earnings Last Week And Analysts Lifted Their Price Target To US$57.75
RxSight, Inc. (NASDAQ:RXST) came out with its full-year results last week, and we wanted to see how the business is performing and what industry forecasters think of the company following this report. Revenue hit US$89m in line with forecasts, although the company reported a statutory loss per share of US$1.41 that was somewhat smaller than the analysts expected. 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 RxSight
Taking into account the latest results, the most recent consensus for RxSight from eight analysts is for revenues of US$131.4m in 2024. If met, it would imply a sizeable 48% increase on its revenue over the past 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 25% to US$0.98. Before this earnings announcement, the analysts had been modelling revenues of US$128.2m and losses of US$1.14 per share in 2024. There's been a pretty noticeable increase in sentiment, with the analysts upgrading revenues and making a notable improvement in loss per share in particular.
It will come as no surprise to learn thatthe analysts have increased their price target for RxSight 17% to US$57.75on the back of these upgrades. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values RxSight at US$64.00 per share, while the most bearish prices it at US$36.00. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the RxSight's past performance and to peers in the same industry. We would highlight that RxSight's revenue growth is expected to slow, with the forecast 48% annualised growth rate until the end of 2024 being well below the historical 61% p.a. growth over the last three years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 7.8% annually. Even after the forecast slowdown in growth, it seems obvious that RxSight is also expected 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. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.
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 forecasts for RxSight going out to 2026, and you can see them free on our platform here.
You still need to take note of risks, for example - RxSight has 3 warning signs we think you should be aware of.
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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.
