Last week, you might have seen that RxSight, Inc. (NASDAQ:RXST) released its annual result to the market. The early response was not positive, with shares down 7.0% to US$28.21 in the past week. Revenues came in at US$140m, in line with forecasts and the company reported a statutory loss of US$0.71 per share, roughly in line with expectations. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

View our latest analysis for RxSight NasdaqGM:RXST Earnings and Revenue Growth February 28th 2025

Taking into account the latest results, the current consensus from RxSight's ten analysts is for revenues of US$190.1m in 2025. This would reflect a substantial 36% increase on its revenue over the past 12 months. Losses are predicted to fall substantially, shrinking 21% to US$0.53. Yet prior to the latest earnings, the analysts had been forecasting revenues of US$189.3m and losses of US$0.53 per share in 2025.

The analysts trimmed their valuations, with the average price target falling 14% to US$44.80, with the ongoing losses seemingly weighing on sentiment, despite no real changes to the earnings forecasts. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic RxSight analyst has a price target of US$60.00 per share, while the most pessimistic values it at US$33.00. 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 pretty clear that there is an expectation that RxSight's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 36% growth on an annualised basis. This is compared to a historical growth rate of 51% over the past five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 7.8% per year. So it's pretty clear that, while RxSight's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

The Bottom Line

The most important thing to take away is that the analysts reconfirmed their loss per share estimates for next year. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected 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 RxSight's future valuation.

Story Continues

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 RxSight analysts - going out to 2027, and you can see them free on our platform here.

And what about risks? Every company has them, and we've spotted  1 warning sign for RxSight  you should know about.

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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.

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