As you might know, Tactile Systems Technology, Inc. (NASDAQ:TCMD) recently reported its quarterly numbers. It looks to have been a decent result overall - while revenue fell marginally short of analyst estimates at US$73m, statutory earnings beat expectations by a notable 18%, coming in at US$0.21 per share. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

Check out our latest analysis for Tactile Systems Technology

Taking into account the latest results, the most recent consensus for Tactile Systems Technology from five analysts is for revenues of US$322.2m in 2025. If met, it would imply a notable 13% increase on its revenue over the past 12 months. Per-share earnings are expected to bounce 34% to US$0.86. Before this earnings report, the analysts had been forecasting revenues of US$327.1m and earnings per share (EPS) of US$0.83 in 2025. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

The analysts have been lifting their price targets on the back of the earnings upgrade, with the consensus price target rising 16% to US$24.00. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Tactile Systems Technology analyst has a price target of US$25.00 per share, while the most pessimistic values it at US$23.00. This is a very narrow spread of estimates, implying either that Tactile Systems Technology is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

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. The period to the end of 2025 brings more of the same, according to the analysts, with revenue forecast to display 10% growth on an annualised basis. That is in line with its 10% annual growth over the past five years. Juxtapose this against our data, which suggests that other companies (with analyst coverage) in the industry are forecast to see their revenues grow 8.2% per year. So although Tactile Systems Technology is expected to maintain its revenue growth rate, it's only growing at about the rate of the wider industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Tactile Systems Technology following these results. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Tactile Systems Technology analysts - going out to 2026, and you can see them free on our platform here.

And what about risks? Every company has them, and we've spotted 2 warning signs for Tactile Systems Technology you should know about.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.