Earnings Update: CVRx, Inc. (NASDAQ:CVRX) Just Reported And Analysts Are Trimming Their Forecasts

One of the biggest stories of last week was how CVRx, Inc. (NASDAQ:CVRX) shares plunged 38% in the week since its latest quarterly results, closing yesterday at US$0.87. The statutory results were mixed overall, with revenues of US$14m in line with analyst forecasts, but losses of US$0.52 per share, some 4.2% larger than the analysts were predicting. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

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Following last week's earnings report, CVRx's seven analysts are forecasting 2027 revenues to be US$60.5m, approximately in line with the last 12 months. Losses are expected to hold steady at around US$1.85. Yet prior to the latest earnings, the analysts had been forecasting revenues of US$66.2m and losses of US$1.91 per share in 2027. So there seems to have been a moderate uplift in analyst sentiment with the latest consensus release, given the upgrade to loss per share forecasts for next year.

Check out our latest analysis for CVRx

The consensus price target fell 31% to US$4.08, with the dip in revenue estimates clearly souring sentiment, despite the forecast reduction in losses. 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. There are some variant perceptions on CVRx, with the most bullish analyst valuing it at US$6.00 and the most bearish at US$2.00 per share. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

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. We would highlight that CVRx's revenue growth is expected to slow, with the forecast 0.3% annualised growth rate until the end of 2027 being well below the historical 29% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 7.5% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than CVRx.

The Bottom Line

The most important thing to take away is that the analysts reconfirmed their loss per share estimates for next year. Unfortunately, they also downgraded their revenue estimates, and our data indicates underperformance compared to the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. Even so, earnings are more important to the intrinsic value of the business. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

With that in mind, we wouldn't be too quick to come to a conclusion on CVRx. Long-term earnings power is much more important than next year's profits. We have forecasts for CVRx going out to 2028, and you can see them free on our platform here.

Before you take the next step you should know about the 3 warning signs for CVRx (1 is concerning!) that we have uncovered.

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