Investors in ReWalk Robotics Ltd. (NASDAQ:LFWD) had a good week, as its shares rose 6.3% to close at US$0.94 following the release of its yearly results. It was a moderately negative result overall – revenue fell 2.4% short of analyst estimates at US$14m, although at least statutory losses were marginally smaller than expected, at US$0.37 per share. The analyst typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we collected the latest post-earnings statutory consensus estimate to see what could be in store for next year.
See our latest analysis for ReWalk Robotics
Taking into account the latest results, the consensus forecast from ReWalk Robotics’ lone analyst is for revenues of US$33.1m in 2024. This reflects a substantial 139% improvement in revenue compared to the last 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 29% to US$0.26. Yet prior to the latest earnings, the analyst had been forecasting revenues of US$33.1m and losses of US$0.37 per share in 2024. While the revenue estimates were largely unchanged, sentiment seems to have improved, with the analyst upgrading their numbers and making a considerable decrease in losses per share in particular.
There’s been no major changes to the consensus price target of US$3.00, suggesting that reduced loss estimates are not enough to have a long-term positive impact on the stock’s valuation.
Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. It’s clear from the latest estimates that ReWalk Robotics’ rate of growth is expected to accelerate meaningfully, with the forecast 139% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 10% 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 7.8% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analyst also expect ReWalk Robotics to grow faster than the wider industry.
The Bottom Line
The most important thing to take away is that the analyst 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 held steady at US$3.00, with the latest estimates not enough to have an impact on their price target.
With that said, the long-term trajectory of the company’s earnings is a lot more important than next year. We have analyst estimates for ReWalk Robotics going out as far as 2026, and you can see them free on our platform here.
Even so, be aware that ReWalk Robotics is showing 3 warning signs in our investment analysis , you should know about…
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.
