Yahoo Finance RadNet, Inc. (NASDAQ:RDNT) First-Quarter Results: Here's What Analysts Are Forecasting For This Year
RadNet, Inc. (NASDAQ:RDNT) just released its quarterly report and things are looking bullish. Revenues and losses per share were both better than expected, with revenues of US$432m leading estimates by 2.4%. Statutory losses were smaller than the analystsexpected, coming in at US$0.04 per share. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on RadNet after the latest results.
View our latest analysis for RadNet
Following the latest results, RadNet's five analysts are now forecasting revenues of US$1.76b in 2024. This would be a satisfactory 6.1% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to soar 81% to US$0.52. Before this earnings report, the analysts had been forecasting revenues of US$1.76b and earnings per share (EPS) of US$0.55 in 2024. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a minor downgrade to their earnings per share forecasts.
It might be a surprise to learn that the consensus price target was broadly unchanged at US$53.83, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. Currently, the most bullish analyst values RadNet at US$61.00 per share, while the most bearish prices it at US$48.00. This is a very narrow spread of estimates, implying either that RadNet is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.
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. We can infer from the latest estimates that forecasts expect a continuation of RadNet'shistorical trends, as the 8.1% annualised revenue growth to the end of 2024 is roughly in line with the 9.6% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 6.7% annually. So although RadNet is expected to maintain its revenue growth rate, it's only growing at about the rate of the wider industry.
The Bottom Line
The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.
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 RadNet going out to 2026, and you can see them free on our platform here..
You should always think about risks though. Case in point, we've spotted 1 warning sign for RadNet you should be aware of.
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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.
