Investors in Zynex, Inc. (NASDAQ:ZYXI) had a good week, as its shares rose 4.8% to close at US$11.77 following the release of its first-quarter results. It was a curious result overall, with revenues coming in 2.4% below what the analysts had expected, at US$47m. The company broke even in terms of statutory earnings per share (EPS). 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 thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
After the latest results, the five analysts covering Zynex are now predicting revenues of US$227.0m in 2024. If met, this would reflect a substantial 20% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to bounce 97% to US$0.51. Before this earnings report, the analysts had been forecasting revenues of US$227.4m and earnings per share (EPS) of US$0.48 in 2024. So the consensus seems to have become somewhat more optimistic on Zynex's earnings potential following these results.
There's been no major changes to the consensus price target of US$18.98, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Zynex at US$27.00 per share, while the most bearish prices it at US$15.00. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.
Of course, another way to look at these forecasts is to place them into context against the industry itself. The period to the end of 2024 brings more of the same, according to the analysts, with revenue forecast to display 28% growth on an annualised basis. That is in line with its 32% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 8.1% annually. So it's pretty clear that Zynex is forecast to grow substantially faster than its industry.
The Bottom Line
The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Zynex's earnings potential 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 in mind, we wouldn't be too quick to come to a conclusion on Zynex. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Zynex 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 Zynex 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.