LivaNova PLC (NASDAQ:LIVN) investors will be delighted, with the company turning in some strong numbers with its latest results. The company beat forecasts, with revenue of US$318m, some 5.9% above estimates, and statutory earnings per share (EPS) coming in at US$0.60, 109% ahead of expectations. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
After the latest results, the ten analysts covering LivaNova are now predicting revenues of US$1.31b in 2025. If met, this would reflect a modest 5.7% improvement in revenue compared to the last 12 months. Per-share earnings are expected to surge 329% to US$1.87. In the lead-up to this report, the analysts had been modelling revenues of US$1.30b and earnings per share (EPS) of US$1.72 in 2025. So the consensus seems to have become somewhat more optimistic on LivaNova's earnings potential following these results.
There's been no major changes to the consensus price target of US$69.00, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's 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. The most optimistic LivaNova analyst has a price target of US$90.00 per share, while the most pessimistic values it at US$53.00. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the LivaNova's past performance and to peers in the same industry. It's clear from the latest estimates that LivaNova's rate of growth is expected to accelerate meaningfully, with the forecast 4.5% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 3.3% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to see revenue growth of 8.2% annually. So it's clear that despite the acceleration in growth, LivaNova is expected to grow meaningfully slower than the industry average.
The Bottom Line
The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around LivaNova's earnings potential next year. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target held steady at US$69.00, with the latest estimates not enough to have an impact on their price targets.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for LivaNova going out to 2026, and you can see them free on our platform here.
You still need to take note of risks, for example - LivaNova has 1 warning sign 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.
