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Shareholders of KORU Medical Systems, Inc. (NASDAQ:KRMD) will be pleased this week, given that the stock price is up 11% to US$3.15 following its latest first-quarter results. The business exceeded expectations with revenue of US$9.6m coming in 8.7% ahead of forecasts. Statutory losses were US$0.03 a share, in line with what the analysts predicted. 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 KORU Medical Systems after the latest results.
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Following the latest results, KORU Medical Systems' five analysts are now forecasting revenues of US$39.0m in 2025. This would be a meaningful 11% improvement in revenue compared to the last 12 months. Losses are expected to be contained, narrowing 15% from last year to US$0.098. Before this earnings announcement, the analysts had been modelling revenues of US$38.4m and losses of US$0.10 per share in 2025. It looks like there's been a modest increase in sentiment in the recent updates, with the analysts becoming a bit more optimistic in their predictions for losses per share, even though the revenue numbers were unchanged.
Check out our latest analysis for KORU Medical Systems
There's been no major changes to the consensus price target of US$5.50, suggesting that reduced loss estimates are not enough to have a long-term positive impact on the stock'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 KORU Medical Systems, with the most bullish analyst valuing it at US$7.00 and the most bearish at US$3.50 per share. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for 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. It's clear from the latest estimates that KORU Medical Systems' rate of growth is expected to accelerate meaningfully, with the forecast 15% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 7.5% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 8.1% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect KORU Medical Systems to grow faster than the wider industry.