KORU Medical Systems, Inc. (NASDAQ:KRMD) Released Earnings Last Week And Analysts Lifted Their Price Target To US$4.10

REPRO MEDSYSTEMS INC -0.12%

REPRO MEDSYSTEMS INC

KRMD

4.00

-0.12%

As you might know, KORU Medical Systems, Inc. (NASDAQ:KRMD) just kicked off its latest quarterly results with some very strong numbers. KORU Medical Systems beat expectations with revenues of US$8.2m arriving 6.1% ahead of forecasts. The company also reported a statutory loss of US$0.03, 10.0% smaller than was expected. 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.

earnings-and-revenue-growth
NasdaqCM:KRMD Earnings and Revenue Growth November 16th 2024

Following the latest results, KORU Medical Systems' five analysts are now forecasting revenues of US$38.1m in 2025. This would be a solid 19% improvement in revenue compared to the last 12 months. Losses are predicted to fall substantially, shrinking 64% to US$0.095. Before this earnings announcement, the analysts had been modelling revenues of US$37.9m and losses of US$0.087 per share in 2025. So it's pretty clear consensus is mixed on KORU Medical Systems after the new consensus numbers; while the analysts held their revenue numbers steady, they also administered a modest increase to per-share loss expectations.

Despite expectations of heavier losses next year,the analysts have lifted their price target 14% to US$4.10, perhaps implying these losses are not expected to be recurring over the long term. 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. Currently, the most bullish analyst values KORU Medical Systems at US$5.00 per share, while the most bearish prices it at US$3.50. 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.

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 KORU Medical Systems' rate of growth is expected to accelerate meaningfully, with the forecast 15% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 6.5% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 8.2% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect KORU Medical Systems to grow faster than 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. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for KORU Medical Systems going out to 2026, and you can see them free on our platform here..

You should always think about risks though.

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