Butterfly Network, Inc. (NYSE:BFLY) just released its latest second-quarter results and things are looking bullish. Revenues and losses per share were both better than expected, with revenues of US$21m leading estimates by 9.8%. Statutory losses were smaller than the analystsexpected, coming in at US$0.07 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

Taking into account the latest results, the current consensus from Butterfly Network's two analysts is for revenues of US$78.4m in 2024. This would reflect a notable 10% increase on its revenue over the past 12 months. Losses are predicted to fall substantially, shrinking 28% to US$0.37. Yet prior to the latest earnings, the analysts had been forecasting revenues of US$76.3m and losses of US$0.42 per share in 2024. So it seems there's been a definite increase in optimism about Butterfly Network's future following the latest consensus numbers, with a cut to the loss per share forecasts in particular.

It will come as no surprise to learn thatthe analysts have increased their price target for Butterfly Network 13% to US$3.38on the back of these upgrades.

Of course, another way to look at these forecasts is to place them into context against the industry itself. The analysts are definitely expecting Butterfly Network's growth to accelerate, with the forecast 22% annualised growth to the end of 2024 ranking favourably alongside historical growth of 5.6% per annum over the past three years. Compare this with other companies in the same industry, which are forecast to grow their revenue 8.2% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Butterfly Network is expected to grow much faster than its industry.

The Bottom Line

The most important thing to take away is that the analysts reconfirmed their loss per share estimates for next year. Happily, they also upgraded their revenue estimates, and are forecasting them to grow faster than 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.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have analyst estimates for Butterfly Network going out as far as 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 Butterfly Network 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.

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