Yahoo Finance Nevro Corp. Analysts Are Pretty Bullish On The Stock After Recent Results
Nevro Corp. (NYSE:NVRO) last week reported its latest yearly results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. Nevro reported revenues of US$390m, in line with expectations, but it unfortunately also reported (statutory) losses of US$3.37 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 top analysts are forecasting for next year, and see if there has been any change to expectations for the business. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether analysts have changed their mind on Nevro after the latest results.
See our latest analysis for Nevro
Taking into account the latest results, the latest consensus from Nevro's twelve analysts is for revenues of US$438.1m in 2020, which would reflect a notable 12% improvement in sales compared to the last 12 months. Statutory losses are forecast to balloon 44% to US$1.89 per share. Yet prior to the latest earnings, analysts had been forecasting revenues of US$441.8m and losses of US$2.86 per share in 2020. Although the revenue estimates have not really changed, we can see there's been a very substantial lift in earnings per share expectations, suggesting that analysts have become more bullish after the latest result.
The average analyst price target rose 8.5% to US$144, with analyst signalling that the forecast reduction in losses would be a positive for the stock's valuation. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on Nevro, with the most bullish analyst valuing it at US$170 and the most bearish at US$100.00 per share. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.
Further, we can compare these estimates to past performance, and see how Nevro forecasts compare to the wider market's forecast performance. It's pretty clear that analysts expect Nevro's revenue growth will slow down substantially, with revenues next year expected to grow 12%, compared to a historical growth rate of 36% over the past five years. Juxtapose this against the other companies in the market with analyst coverage, which are forecast to grow their revenues (in aggregate) 7.7% next year. Even after the forecast slowdown in growth, it seems obvious that analysts still thinkNevro will grow faster than the wider market.
The Bottom Line
The most important thing to note from these estimates is that the consensus increased its forecast losses next year, suggesting all may not be well at Nevro. Happily, there were no major changes to revenue forecasts, with analysts still expecting the business to grow faster than the wider market. Analysts also upgraded their price target, suggesting that analysts believe the intrinsic value of the business is likely to improve over time.
Still, the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for Nevro going out to 2023, and you can see them free on our platform here..
Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months on our platform, here.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.
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