It's been a sad week for Medical Developments International Limited (ASX:MVP), who've watched their investment drop 13% to AU$0.80 in the week since the company reported its interim result. Although revenues of AU$20m were in line with analyst expectations, Medical Developments International surprised on the earnings front, with an unexpected (statutory) profit of AU$0.0027 per share a nice improvement on the losses that the analystforecast. Following the result, the analyst has updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. With this in mind, we've gathered the latest statutory forecasts to see what the analyst is expecting for next year.

Check out our latest analysis for Medical Developments International

After the latest results, the sole analyst covering Medical Developments International are now predicting revenues of AU$40.1m in 2025. If met, this would reflect a modest 5.4% improvement in revenue compared to the last 12 months. Losses are predicted to fall substantially, shrinking 99% to AU$0.003. Before this earnings announcement, the analyst had been modelling revenues of AU$42.0m and losses of AU$0.026 per share in 2025. Although the revenue estimate has fallen somewhat, Medical Developments International'sfuture looks a little different to the past, with a considerable decrease in the loss per share forecasts in particular.

There was a decent 5.1% increase in the price target to AU$3.50, with the analyst clearly signalling that the expected reduction in losses is a positive, despite a weaker revenue outlook.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. The period to the end of 2025 brings more of the same, according to the analyst, with revenue forecast to display 11% growth on an annualised basis. That is in line with its 11% annual growth over the past five years. Compare this with the broader industry (in aggregate), which analyst estimates suggest will see revenues grow 43% annually. So it's pretty clear that Medical Developments International is expected to grow slower than similar companies in the same industry.

The Bottom Line

The most important thing to take away is that the analyst reconfirmed their loss per share estimates for next year. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse than the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. There was also a nice increase in the price target, with the analyst clearly feeling that the intrinsic value of the business is improving.

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 analyst estimates for Medical Developments International going out as far as 2027, and you can see them free on our platform here.

Plus, you should also learn about the 3 warning signs we've spotted with Medical Developments International (including 2 which are significant) .

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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.