LENSAR, Inc. (NASDAQ:LNSR) just released its latest third-quarter results and things are looking bullish. LENSAR outperformed estimates, with revenues of US$14m beating estimates by 18%. Statutory losses were US$0.13, 56% smaller thanthe analysts expected. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on LENSAR after the latest results.
Taking into account the latest results, the most recent consensus for LENSAR from dual analysts is for revenues of US$64.6m in 2025. If met, it would imply a substantial 32% increase on its revenue over the past 12 months. Losses are predicted to fall substantially, shrinking 50% to US$0.71. Before this earnings announcement, the analysts had been modelling revenues of US$61.7m and losses of US$0.81 per share in 2025. There's been a pretty noticeable increase in sentiment, with the analysts upgrading revenues and making a cut to loss per share in particular.
Yet despite these upgrades, the analysts cut their price target 25% to US$9.00, implicitly signalling that the ongoing losses are likely to weigh negatively on LENSAR's valuation.
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. The analysts are definitely expecting LENSAR's growth to accelerate, with the forecast 25% 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 8.3% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that LENSAR is expected to grow much faster than its industry.
The Bottom Line
The most obvious conclusion is that the analysts made no changes to their forecasts for a loss next year. Happily, they also upgraded their revenue estimates, and are forecasting them to grow faster than the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of LENSAR's future valuation.
With that in mind, we wouldn't be too quick to come to a conclusion on LENSAR. Long-term earnings power is much more important than next year's profits. We have analyst estimates for LENSAR going out as far as 2026, and you can see them free on our platform here.
However, before you get too enthused, we've discovered 4 warning signs for LENSAR 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.
