Rockwell Medical, Inc. (NASDAQ:RMTI) just released its third-quarter report and things are looking bullish. The company beat forecasts, with revenue of US$28m, some 6.9% above estimates, and statutory earnings per share (EPS) coming in at US$0.05, 400% ahead of expectations. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
Taking into account the latest results, the current consensus, from the twin analysts covering Rockwell Medical, is for revenues of US$93.0m in 2025. This implies a noticeable 6.0% reduction in Rockwell Medical's revenue over the past 12 months. Per-share statutory losses are expected to explode, reaching US$0.005 per share. In the lead-up to this report, the analysts had been modelling revenues of US$108.9m and earnings per share (EPS) of US$0.07 in 2025. So we can see that the consensus has become notably more bearish on Rockwell Medical's outlook following these results, with a substantial drop in next year's revenue estimates. Furthermore, they expect the business to be loss-making next year, compared to their previous calls for a profit.
The consensus price target fell 6.3% to US$7.50, with the analysts clearly concerned about the company following the weaker revenue and earnings outlook.
Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that revenue is expected to reverse, with a forecast 4.8% annualised decline to the end of 2025. That is a notable change from historical growth of 9.5% 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 8.2% per year. It's pretty clear that Rockwell Medical's revenues are expected to perform substantially worse than the wider industry.
The Bottom Line
The most important thing to take away is that the analysts are expecting Rockwell Medical to become unprofitable next year. Unfortunately, they also downgraded their revenue estimates, and our data indicates underperformance compared to the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Rockwell Medical's 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 Rockwell Medical going out as far as 2026, and you can see them free on our platform here.
Don't forget that there may still be risks. For instance, we've identified 3 warning signs for Rockwell Medical (1 makes us a bit uncomfortable) 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.
