Last week, you might have seen that iRhythm Technologies, Inc. (NASDAQ:IRTC) released its quarterly result to the market. The early response was not positive, with shares down 4.3% to US$72.44 in the past week. Revenues were in line with expectations, at US$148m, while statutory losses ballooned to US$1.48 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

See our latest analysis for iRhythm Technologies

Taking into account the latest results, the current consensus from iRhythm Technologies' twelve analysts is for revenues of US$683.1m in 2025. This would reflect a sizeable 22% increase on its revenue over the past 12 months. Losses are predicted to fall substantially, shrinking 60% to US$1.94. Before this latest report, the consensus had been expecting revenues of US$690.0m and US$1.89 per share in losses. Overall it looks as though the analysts were a bit mixed on the latest consensus updates. Although revenue forecasts held steady, the consensus also made a moderate increase in its losses per share forecasts.

With the increase in forecast losses for next year, it's perhaps no surprise to see that the average price target dipped 10% to US$101, with the analysts signalling that growing losses would be a definite concern. 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 iRhythm Technologies at US$125 per share, while the most bearish prices it at US$78.00. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await iRhythm Technologies shareholders.

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 can infer from the latest estimates that forecasts expect a continuation of iRhythm Technologies'historical trends, as the 17% annualised revenue growth to the end of 2025 is roughly in line with the 20% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 8.3% annually. So it's pretty clear that iRhythm Technologies is forecast to grow substantially faster than its industry.

The Bottom Line

The most important thing to note is the forecast of increased losses next year, suggesting all may not be well at iRhythm Technologies. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

With that in mind, we wouldn't be too quick to come to a conclusion on iRhythm Technologies. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple iRhythm Technologies analysts - going out to 2026, and you can see them free on our platform here.

Plus, you should also learn about the 3 warning signs we've spotted with iRhythm Technologies .

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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.