CVRx, Inc. (NASDAQ:CVRX) Consensus Forecasts Have Become A Little Darker Since Its Latest Report
Shareholders in CVRx, Inc. (NASDAQ:CVRX) had a terrible week, as shares crashed 54% to US$2.39 in the week since its latest second-quarter results. CVRx reported revenues of US$16m, in line with expectations, but it unfortunately also reported (statutory) losses of US$0.53 per share, which were slightly larger than expected. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
Taking into account the latest results, the current consensus, from the seven analysts covering CVRx, is for revenues of US$58.8m in 2026. This implies a noticeable 3.9% reduction in CVRx's revenue over the past 12 months. Losses are expected to increase slightly, to US$2.02 per share. Before this latest report, the consensus had been expecting revenues of US$65.3m and US$1.96 per share in losses. So it's pretty clear consensus is more negative on CVRx after the new consensus numbers; while the analysts trimmed their revenue estimates, they also administered a pronounced increase to per-share loss expectations.
See our latest analysis for CVRx
The average price target fell 47% to US$5.92, implicitly signalling that lower earnings per share are a leading indicator for CVRx's valuation. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on CVRx, with the most bullish analyst valuing it at US$13.00 and the most bearish at US$3.50 per share. As you can see the range of estimates is wide, with the lowest valuation coming in at less than half the most bullish estimate, suggesting there are some strongly diverging views on how analysts think this business will perform. As a result it might not be a great idea to make decisions based on the consensus price target, which is after all just an average of this wide range of estimates.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the CVRx's past performance and to peers in the same industry. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 7.6% by the end of 2026. This indicates a significant reduction from annual growth of 32% 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 7.6% per year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - CVRx is expected to lag the wider industry.
The Bottom Line
The most important thing to take away is that the analysts increased their loss per share estimates for next year. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse 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 CVRx's future valuation.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates - from multiple CVRx analysts - going out to 2028, and you can see them free on our platform here.
That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 3 warning signs with CVRx (at least 1 which is a bit concerning) , and understanding these should be part of your investment process.
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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.