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As you might know, OrthoPediatrics Corp. (NASDAQ:KIDS) last week released its latest full-year, and things did not turn out so great for shareholders. It was a pretty negative result overall, with revenues of US$71m missing analyst predictions by 2.2%. Worse, the business reported a statutory loss of US$1.82 per share, much larger than the analysts had forecast prior to the result. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
Check out our latest analysis for OrthoPediatrics
Taking into account the latest results, the consensus forecast from OrthoPediatrics' six analysts is for revenues of US$95.4m in 2021, which would reflect a substantial 34% improvement in sales compared to the last 12 months. Losses are predicted to fall substantially, shrinking 62% to US$0.70. Before this earnings announcement, the analysts had been modelling revenues of US$97.3m and losses of US$0.66 per share in 2021. So it's pretty clear consensus is mixed on OrthoPediatrics after the new consensus numbers; while the analysts held their revenue numbers steady, they also administered a moderate increase in per-share loss expectations.
The consensus price target held steady at US$55.67, seemingly implying that the higher forecast losses are not expected to have a long term impact on the company's valuation. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. There are some variant perceptions on OrthoPediatrics, with the most bullish analyst valuing it at US$58.00 and the most bearish at US$54.00 per share. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.
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 OrthoPediatrics' rate of growth is expected to accelerate meaningfully, with the forecast 34% annualised revenue growth to the end of 2021 noticeably faster than its historical growth of 18% p.a. 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 9.0% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that OrthoPediatrics is expected to grow much faster than its industry.