IRADIMED CORPORATION Just Beat EPS By 6.7%: Here's What Analysts Think Will Happen Next

IRADIMED CORPORATION (NASDAQ:IRMD) defied analyst predictions to release its quarterly results, which were ahead of market expectations. Results were good overall, with revenues beating analyst predictions by 2.7% to hit US$18m. Statutory earnings per share (EPS) came in at US$0.32, some 6.7% above whatthe analysts had expected. 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.

See our latest analysis for IRADIMED

Following the latest results, IRADIMED's twin analysts are now forecasting revenues of US$72.5m in 2024. This would be a reasonable 7.2% improvement in revenue compared to the last 12 months. Statutory per share are forecast to be US$1.39, approximately in line with the last 12 months. In the lead-up to this report, the analysts had been modelling revenues of US$72.6m and earnings per share (EPS) of US$1.38 in 2024. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

With the analysts reconfirming their revenue and earnings forecasts, it's surprising to see that the price target rose 19% to US$62.50. It looks as though they previously had some doubts over whether the business would live up to their expectations.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. It's pretty clear that there is an expectation that IRADIMED's revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 9.7% growth on an annualised basis. This is compared to a historical growth rate of 16% over the past five years. Compare this to the 242 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 8.1% per year. Factoring in the forecast slowdown in growth, it looks like IRADIMED is forecast to grow at about the same rate as the wider industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

With that in mind, we wouldn't be too quick to come to a conclusion on IRADIMED. Long-term earnings power is much more important than next year's profits. At least one analyst has provided forecasts out to 2026, which can be seen for free on our platform here.

That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 2 warning signs with IRADIMED (at least 1 which is concerning) , and understanding them should be part of your investment process.

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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.