Shareholders of Zynex, Inc. (NASDAQ:ZYXI) will be pleased this week, given that the stock price is up 14% to US$9.12 following its latest quarterly results. It looks like a credible result overall - although revenues of US$50m were what the analysts expected, Zynex surprised by delivering a (statutory) profit of US$0.07 per share, an impressive 24% above what was forecast. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

Following the latest results, Zynex's three analysts are now forecasting revenues of US$239.6m in 2025. This would be a huge 24% improvement in revenue compared to the last 12 months. Per-share earnings are expected to jump 213% to US$0.47. Before this earnings report, the analysts had been forecasting revenues of US$242.6m and earnings per share (EPS) of US$0.50 in 2025. The analysts seem to have become a little more negative on the business after the latest results, given the small dip in their earnings per share numbers for next year.

It might be a surprise to learn that the consensus price target was broadly unchanged at US$17.50, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on 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. There are some variant perceptions on Zynex, with the most bullish analyst valuing it at US$24.50 and the most bearish at US$11.00 per share. 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.

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. We would highlight that Zynex's revenue growth is expected to slow, with the forecast 19% annualised growth rate until the end of 2025 being well below the historical 27% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 8.2% annually. Even after the forecast slowdown in growth, it seems obvious that Zynex is also expected to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Happily, there were no major changes to revenue forecasts, with the business still 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.

Even so, be aware that Zynex is showing 3 warning signs in our investment analysis , you should know about...

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