Shareholders might have noticed that AtriCure, Inc. (NASDAQ:ATRC) filed its quarterly result this time last week. The early response was not positive, with shares down 8.3% to US$21.57 in the past week. The results overall were pretty much dead in line with analyst forecasts; revenues were US$116m and statutory losses were US$0.17 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 collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

Taking into account the latest results, the consensus forecast from AtriCure's nine analysts is for revenues of US$458.1m in 2024. This reflects an okay 6.5% improvement in revenue compared to the last 12 months. The loss per share is expected to ameliorate slightly, reducing to US$0.79. Yet prior to the latest earnings, the analysts had been forecasting revenues of US$461.8m and losses of US$0.78 per share in 2024.

The analysts trimmed their valuations, with the average price target falling 8.7% to US$40.89, with the ongoing losses seemingly weighing on sentiment, despite no real changes to the earnings forecasts. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values AtriCure at US$60.00 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.

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. The period to the end of 2024 brings more of the same, according to the analysts, with revenue forecast to display 14% growth on an annualised basis. That is in line with its 16% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 8.2% 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 take away is that the analysts reconfirmed their loss per share estimates for next year. Happily, there were no major changes to revenue forecasts, with the business still 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 estimates - from multiple AtriCure analysts - going out to 2026, and you can see them free on our platform here.

You still need to take note of risks, for example - AtriCure has 2 warning signs we think 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com