Establishment Labs Holdings Inc. (NASDAQ:ESTA) Just Reported Yearly Earnings: Have Analysts Changed Their Mind On The Stock?

Simply Wall St.
01 Mar

The investors in Establishment Labs Holdings Inc.'s (NASDAQ:ESTA) will be rubbing their hands together with glee today, after the share price leapt 28% to US$42.87 in the week following its full-year results. It was a pretty bad result overall; while revenues were in line with expectations at US$166m, statutory losses exploded to US$3.00 per share. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

See our latest analysis for Establishment Labs Holdings

NasdaqCM:ESTA Earnings and Revenue Growth March 1st 2025

Taking into account the latest results, the current consensus from Establishment Labs Holdings' seven analysts is for revenues of US$207.3m in 2025. This would reflect a huge 25% increase on its revenue over the past 12 months. Losses are predicted to fall substantially, shrinking 33% to US$2.01. Yet prior to the latest earnings, the analysts had been forecasting revenues of US$206.5m and losses of US$1.84 per share in 2025. So it's pretty clear consensus is mixed on Establishment Labs Holdings after the new consensus numbers; while the analysts held their revenue numbers steady, they also administered a pronounced increase to per-share loss expectations.

The consensus price target held steady at US$58.67, seemingly implying that the higher forecast losses are not expected to have a long term impact on the company's valuation. 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 Establishment Labs Holdings at US$75.00 per share, while the most bearish prices it at US$42.00. 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 Establishment Labs Holdings shareholders.

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 Establishment Labs Holdings' rate of growth is expected to accelerate meaningfully, with the forecast 25% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 15% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 7.8% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Establishment Labs Holdings to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that the analysts increased their loss per share estimates for next year. 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. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Establishment Labs Holdings analysts - going out to 2027, 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 Establishment Labs Holdings 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.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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