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Downgrade: Here's How Analysts See Apyx Medical Corporation (NASDAQ:APYX) Performing In The Near Term

One thing we could say about the analysts on Apyx Medical Corporation (NASDAQ:APYX) - they aren't optimistic, having just made a major negative revision to their near-term (statutory) forecasts for the organization. Both revenue and earnings per share (EPS) forecasts went under the knife, suggesting analysts have soured majorly on the business.

Following the latest downgrade, the five analysts covering Apyx Medical provided consensus estimates of US$50m revenue in 2024, which would reflect a discernible 4.6% decline on its sales over the past 12 months. Losses are supposed to balloon 44% to US$0.78 per share. Yet prior to the latest estimates, the analysts had been forecasting revenues of US$60m and losses of US$0.51 per share in 2024. Ergo, there's been a clear change in sentiment, with the analysts 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 Apyx Medical

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earnings-and-revenue-growth

The consensus price target fell 22% to US$3.63, implicitly signalling that lower earnings per share are a leading indicator for Apyx Medical's valuation.

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One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We would highlight that sales are expected to reverse, with a forecast 4.6% annualised revenue decline to the end of 2024. That is a notable change from historical growth of 20% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 7.9% per year. It's pretty clear that Apyx Medical's revenues are expected to perform substantially worse than the wider 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 Apyx Medical. Unfortunately analysts also downgraded their revenue estimates, and industry data suggests that Apyx Medical's revenues are expected to grow slower 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.

Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. We have estimates - from multiple Apyx Medical analysts - going out to 2026, and you can see them free on our platform here.

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.

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.