Shareholders will be ecstatic, with their stake up 27% over the past week following Streamline Health Solutions, Inc.'s (NASDAQ:STRM) latest quarterly results. It was a pretty bad result overall; while revenues were in line with expectations at US$4.3m, statutory losses exploded to US$0.05 per share. The analyst 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 gathered the latest post-earnings forecasts to see what estimate suggests is in store for next year.
Taking into account the latest results, the solitary analyst covering Streamline Health Solutions provided consensus estimates of US$20.0m revenue in 2025, which would reflect a measurable 7.3% decline over the past 12 months. Losses are predicted to fall substantially, shrinking 58% to US$0.13. Yet prior to the latest earnings, the analyst had been forecasting revenues of US$20.0m and losses of US$0.11 per share in 2025. So it's pretty clear the analyst has mixed opinions on Streamline Health Solutions even after this update; although they reconfirmed their revenue numbers, it came at the cost of a considerable increase in per-share losses.
With the increase in forecast losses for next year, it's perhaps no surprise to see that the average price target dipped 40% to US$1.50, with the analyst signalling that growing losses would be a definite concern.
Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We would highlight that revenue is expected to reverse, with a forecast 9.6% annualised decline to the end of 2025. That is a notable change from historical growth of 14% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 10% per year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Streamline Health Solutions is expected to lag the wider industry.
The Bottom Line
The most important thing to take away is that the analyst increased their loss per share estimates for next year. Fortunately, the analyst also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Streamline Health Solutions' revenue is expected to perform worse than the wider industry. The consensus price target fell measurably, with the analyst seemingly not reassured by the latest results, leading to a lower estimate of Streamline Health Solutions' future valuation.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have analyst estimates for Streamline Health Solutions going out as far as 2027, and you can see them free on our platform here.
However, before you get too enthused, we've discovered 5 warning signs for Streamline Health Solutions (2 shouldn't be ignored!) that 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.
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