Shareholders might have noticed that AtriCure, Inc. (NASDAQ:ATRC) filed its first-quarter result this time last week. The early response was not positive, with shares down 9.8% to US$20.89 in the past week. It was a pretty bad result overall; while revenues were in line with expectations at US$109m, statutory losses exploded to US$0.28 per share. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

See our latest analysis for AtriCure

After the latest results, the nine analysts covering AtriCure are now predicting revenues of US$461.9m in 2024. If met, this would reflect a solid 11% improvement in revenue compared to the last 12 months. Losses are expected to hold steady at around US$0.78. Before this latest report, the consensus had been expecting revenues of US$461.2m and US$0.74 per share in losses. So it's pretty clear consensus is mixed on AtriCure after the new consensus numbers; while the analysts held their revenue numbers steady, they also administered a pronounced increase to per-share loss expectations.

With the increase in forecast losses for next year, it's perhaps no surprise to see that the average price target dipped 8.8% to US$47.33, with the analysts signalling that growing losses would be a definite concern. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. Currently, the most bullish analyst values AtriCure at US$65.00 per share, while the most bearish prices it at US$30.00. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

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 AtriCure'shistorical trends, as the 15% annualised revenue growth to the end of 2024 is roughly in line with the 15% 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 AtriCure 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 AtriCure. 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. 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.

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 forecasts for AtriCure going out to 2026, and you can see them free on our platform here.

You should always think about risks though. Case in point, we've spotted 2 warning signs for AtriCure you should be aware of.

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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.