Shoulder Innovations, Inc. (NYSE:SI) Just Released Its Third-Quarter Results And Analysts Are Updating Their Estimates

A week ago, Shoulder Innovations, Inc. (NYSE:SI) came out with a strong set of quarterly numbers that could potentially lead to a re-rate of the stock. Revenues and losses per share were both better than expected, with revenues of US$16m leading estimates by 4.7%. Statutory losses were smaller than the analystsexpected, coming in at US$0.34 per share. The analysts 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

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Taking into account the latest results, the current consensus from Shoulder Innovations' four analysts is for revenues of US$88.4m in 2027. This would reflect a sizeable 37% increase on its revenue over the past 12 months. The loss per share is expected to ameliorate slightly, reducing to US$1.57. Before this latest report, the consensus had been expecting revenues of US$88.4m and US$1.57 per share in losses.

View our latest analysis for Shoulder Innovations

The consensus price target was unchanged at US$27.00, suggesting that the business - losses and all - is executing in line with estimates. 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. The most optimistic Shoulder Innovations analyst has a price target of US$28.00 per share, while the most pessimistic values it at US$25.00. This is a very narrow spread of estimates, implying either that Shoulder Innovations is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

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 Shoulder Innovations' revenue growth is expected to slow, with the forecast 29% annualised growth rate until the end of 2027 being well below the historical 39% p.a. growth over the last three years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 7.5% per year. Even after the forecast slowdown in growth, it seems obvious that Shoulder Innovations is also expected to grow faster than the wider industry.

The Bottom Line

The most obvious conclusion is that the analysts made no changes to their forecasts for a loss 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$27.00, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Shoulder Innovations going out to 2028, 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 Shoulder Innovations you should be aware of.

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