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Last week, you might have seen that Apyx Medical Corporation (NASDAQ:APYX) released its first-quarter result to the market. The early response was not positive, with shares down 7.2% to US$1.16 in the past week. Revenues of US$9.4m were in line with expectations, although statutory losses per share were US$0.10, some 17% smaller than was 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 gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
Taking into account the latest results, Apyx Medical's three analysts currently expect revenues in 2025 to be US$48.2m, approximately in line with the last 12 months. Losses are predicted to fall substantially, shrinking 32% to US$0.36. Before this latest report, the consensus had been expecting revenues of US$48.0m and US$0.41 per share in losses. While the revenue estimates were largely unchanged, sentiment seems to have improved, with the analysts upgrading their numbers and making a notable improvement in losses per share in particular.
See our latest analysis for Apyx Medical
The average price target rose 33% to US$4.00, with the analysts signalling that the forecast reduction in losses would be a positive for the stock'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. It's pretty clear that there is an expectation that Apyx Medical's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 2.5% growth on an annualised basis. This is compared to a historical growth rate of 11% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 8.2% per year. Factoring in the forecast slowdown in growth, it seems obvious that Apyx Medical is also expected to grow slower than other industry participants.
The Bottom Line
The most important thing to take away is that the analysts reconfirmed their loss per share estimates for next year. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Apyx Medical's revenue is expected to perform worse 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.