Shareholders of ClearPoint Neuro, Inc. (NASDAQ:CLPT) will be pleased this week, given that the stock price is up 19% to US$7.21 following its latest full-year results. Revenues came in at US$24m, in line with forecasts and the company reported a statutory loss of US$0.90 per share, roughly in line with 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on ClearPoint Neuro after the latest results.
Taking into account the latest results, the consensus forecast from ClearPoint Neuro's three analysts is for revenues of US$30.3m in 2024. This reflects a substantial 26% improvement in revenue compared to the last 12 months. The loss per share is expected to ameliorate slightly, reducing to US$0.76. Before this earnings announcement, the analysts had been modelling revenues of US$30.4m and losses of US$0.80 per share in 2024. So there seems to have been a moderate uplift in analyst sentiment with the latest consensus release, given the upgrade to loss per share forecasts for this year.
The average price target held steady at US$10.00, seeming to indicate that business is performing in line with expectations. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on ClearPoint Neuro, with the most bullish analyst valuing it at US$11.00 and the most bearish at US$9.00 per share. This is a very narrow spread of estimates, implying either that ClearPoint Neuro is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.
Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. It's clear from the latest estimates that ClearPoint Neuro's rate of growth is expected to accelerate meaningfully, with the forecast 26% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 21% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 7.8% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect ClearPoint Neuro to grow faster than the wider industry.
The Bottom Line
The most obvious conclusion is that the analysts made no changes to their forecasts for a loss next year. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is 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 said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for ClearPoint Neuro going out to 2026, and you can see them free on our platform here..
You still need to take note of risks, for example - ClearPoint Neuro has 3 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.