Shareholders of VirTra, Inc. (NASDAQ:VTSI) will be pleased this week, given that the stock price is up 12% to US$7.36 following its latest quarterly results. VirTra beat revenue forecasts by a solid 15% to hit US$7.5m. Statutory earnings per share came in at US$0.05, in line with expectations. 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. 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 VirTra

Following the latest results, VirTra's dual analysts are now forecasting revenues of US$36.1m in 2025. This would be a notable 14% improvement in revenue compared to the last 12 months. Statutory earnings per share are forecast to decline 16% to US$0.43 in the same period. Before this earnings report, the analysts had been forecasting revenues of US$36.1m and earnings per share (EPS) of US$0.89 in 2025. The analysts seem to have become more bearish following the latest results. While there were no changes to revenue forecasts, there was a pretty serious reduction to EPS estimates.

It might be a surprise to learn that the consensus price target fell 36% to US$11.25, with the analysts clearly linking lower forecast earnings to the performance of the stock price.

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. We would highlight that VirTra's revenue growth is expected to slow, with the forecast 11% annualised growth rate until the end of 2025 being well below the historical 16% 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) 4.4% per year. So it's pretty clear that, while VirTra's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of VirTra's future valuation.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At least one analyst has provided forecasts out to 2025, which can be seen for free on our platform here.

And what about risks? Every company has them, and we've spotted 2 warning signs for VirTra (of which 1 is significant!) you should know about.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.