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IRADIMED CORPORATION (NASDAQ:IRMD) shareholders are probably feeling a little disappointed, since its shares fell 8.2% to US$55.23 in the week after its latest annual results. IRADIMED reported in line with analyst predictions, delivering revenues of US$73m and statutory earnings per share of US$1.50, suggesting the business is executing well and in line with its plan. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
Check out our latest analysis for IRADIMED
Taking into account the latest results, the current consensus from IRADIMED's dual analysts is for revenues of US$79.4m in 2025. This would reflect a meaningful 8.4% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to accumulate 5.8% to US$1.61. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$80.7m and earnings per share (EPS) of US$1.61 in 2025. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.
The consensus price target rose 9.2% to US$71.00despite there being no meaningful change to earnings estimates. It could be that the analystsare reflecting the predictability of IRADIMED's earnings by assigning a price premium.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the IRADIMED's past performance and to peers in the same industry. We would highlight that IRADIMED's revenue growth is expected to slow, with the forecast 8.4% annualised growth rate until the end of 2025 being well below the historical 17% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 7.9% annually. Factoring in the forecast slowdown in growth, it looks like IRADIMED is forecast to grow at about the same rate as the wider industry.
The Bottom Line
The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall 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.