The Consensus EPS Estimates For LENSAR, Inc. (NASDAQ:LNSR) Just Fell A Lot

Market forces rained on the parade of LENSAR, Inc. (NASDAQ:LNSR) shareholders today, when the covering analyst downgraded their forecasts for this year. Both revenue and earnings per share (EPS) forecasts went under the knife, suggesting the analyst has soured majorly on the business.

Following the downgrade, the latest consensus from LENSAR's lone analyst is for revenues of US$43m in 2023, which would reflect a major 22% improvement in sales compared to the last 12 months. Losses are predicted to fall substantially, shrinking 29% to US$1.28. However, before this estimates update, the consensus had been expecting revenues of US$48m and US$0.91 per share in losses. Ergo, there's been a clear change in sentiment, with the analyst administering a notable cut to this year's revenue estimates, while at the same time increasing their loss per share forecasts.

Check out our latest analysis for LENSAR

The consensus price target fell 14% to US$12.00, with the analyst clearly concerned about the company following the weaker revenue and earnings outlook.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. The analyst is definitely expecting LENSAR's growth to accelerate, with the forecast 22% annualised growth to the end of 2023 ranking favourably alongside historical growth of 11% per annum over the past three years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 7.5% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that LENSAR is expected to grow much faster than its industry.

The Bottom Line

The most important thing to note from this downgrade is that the consensus increased its forecast losses this year, suggesting all may not be well at LENSAR. Unfortunately, the analyst also downgraded their revenue estimates, although our data indicates revenues are expected to perform better than the wider market. Given the scope of the downgrades, it would not be a surprise to see the market become more wary of the business.

As you can see, the covering analyst clearly isn't bullish, and there might be good reason for that. We've identified some potential issues with LENSAR's financials, such as a short cash runway. For more information, you can click here to discover this and the 2 other concerns we've identified.

Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are downgrading their estimates. So you may also wish to search this free list of stocks that insiders are buying.

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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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