Senseonics Holdings, Inc. (NASDAQ:SENS) Analysts Are Pretty Bullish On The Stock After Recent Results
Senseonics Holdings, Inc. (NASDAQ:SENS) defied analyst predictions to release its third-quarter results, which were ahead of market expectations. Revenues of US$20m beat estimates by a substantial 21% margin. Unfortunately, Senseonics Holdings also reported a statutory loss of US$0.50 per share, which at least was smaller than the analysts 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
Taking into account the latest results, the consensus forecast from Senseonics Holdings' seven analysts is for revenues of US$104.3m in 2027. This reflects a major 74% improvement in revenue compared to the last 12 months. Losses are supposed to decline, shrinking 15% from last year to US$1.91. Before this latest report, the consensus had been expecting revenues of US$100.0m and US$1.91 per share in losses.
View our latest analysis for Senseonics Holdings
The consensus price target rose 9.1% to US$14.92, with the analysts encouraged by the improved revenue outlook even though the company remains lossmaking. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values Senseonics Holdings at US$20.00 per share, while the most bearish prices it at US$9.00. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.
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. It's clear from the latest estimates that Senseonics Holdings' rate of growth is expected to accelerate meaningfully, with the forecast 56% annualised revenue growth to the end of 2027 noticeably faster than its historical growth of 28% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 7.5% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Senseonics Holdings 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. Happily, they also upgraded their revenue estimates, and are forecasting them to grow faster than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.
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 Senseonics Holdings analysts - going out to 2028, and you can see them free on our platform here.
You should always think about risks though. Case in point, we've spotted 4 warning signs for Senseonics Holdings you should be aware of, and 2 of them are a bit concerning.
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