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The analysts might have been a bit too bullish on EDAP TMS S.A. (NASDAQ:EDAP), given that the company fell short of expectations when it released its quarterly results last week. It was a pretty negative result overall, with revenues of €14m missing analyst predictions by 8.3%. Worse, the business reported a statutory loss of €0.20 per share, much larger than the analysts had forecast prior to the result. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on EDAP TMS after the latest results.
Following the recent earnings report, the consensus from three analysts covering EDAP TMS is for revenues of €57.5m in 2025. This implies an uncomfortable 8.4% decline in revenue compared to the last 12 months. Per-share losses are supposed to see a sharp uptick, reaching €0.63. Before this earnings announcement, the analysts had been modelling revenues of €61.9m and losses of €0.55 per share in 2025. While this year's revenue estimates dropped there was also a notable increase in loss per share expectations, suggesting the consensus has a bit of a mixed view on the stock.
Check out our latest analysis for EDAP TMS
The average price target fell 32% to US$5.75, implicitly signalling that lower earnings per share are a leading indicator for EDAP TMS' valuation. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values EDAP TMS at US$14.00 per share, while the most bearish prices it at US$1.50. With such a wide range in price targets, analysts are almost certainly betting on widely divergent outcomes in the underlying business. With this in mind, we wouldn't rely too heavily the consensus price target, as it is just an average and analysts clearly have some deeply divergent views on the business.
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. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 11% by the end of 2025. This indicates a significant reduction from annual growth of 11% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 8.2% per year. It's pretty clear that EDAP TMS' revenues are expected to perform substantially worse than the wider industry.