It's been a sad week for Journey Medical Corporation (NASDAQ:DERM), who've watched their investment drop 10% to US$5.08 in the week since the company reported its third-quarter result. Revenues of US$15m were in line with expectations, although statutory losses per share were US$0.12, some 19% smaller than was expected. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

Taking into account the latest results, the most recent consensus for Journey Medical from four analysts is for revenues of US$78.0m in 2025. If met, it would imply a major 35% increase on its revenue over the past 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 80% to US$0.18. Before this earnings announcement, the analysts had been modelling revenues of US$78.5m and losses of US$0.065 per share in 2025. So it's pretty clear the analysts have mixed opinions on Journey Medical even after this update; although they reconfirmed their revenue numbers, it came at the cost of a very substantial increase in per-share losses.

Although the analysts are now forecasting higher losses, the average price target rose 6.8% to 9.125, which could indicate that these losses are expected to be "one-off", or are not anticipated to have a longer-term impact on the business. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic Journey Medical analyst has a price target of US$11.00 per share, while the most pessimistic values it at US$8.00. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

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. The analysts are definitely expecting Journey Medical's growth to accelerate, with the forecast 27% annualised growth to the end of 2025 ranking favourably alongside historical growth of 12% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 10% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Journey Medical is expected to grow much 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 Journey Medical. Happily, there were no major changes to revenue forecasts, with the business still expected 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.

With that in mind, we wouldn't be too quick to come to a conclusion on Journey Medical. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Journey Medical analysts - going out to 2026, and you can see them free on our platform here.

Plus, you should also learn about the 3 warning signs we've spotted with Journey Medical (including 1 which can't be ignored) .

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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.