News Flash: 2 Analysts Think Nano-X Imaging Ltd. (NASDAQ:NNOX) Earnings Are Under Threat
Today is shaping up negative for Nano-X Imaging Ltd. (NASDAQ:NNOX) shareholders, with the analysts delivering a substantial negative revision to this year's forecasts. Both revenue and earnings per share (EPS) estimates were cut sharply as analysts factored in the latest outlook for the business, concluding that they were too optimistic previously. The stock price has risen 4.9% to US$0.73 over the past week. It will be interesting to see if this downgrade motivates investors to start selling their holdings.
After this downgrade, Nano-X Imaging's twin analysts are now forecasting revenues of US$22m in 2026. This would be a substantial 42% improvement in sales compared to the last 12 months. Losses are predicted to fall substantially, shrinking 21% to US$1.31 per share. Yet prior to the latest estimates, the analysts had been forecasting revenues of US$28m and losses of US$0.84 per share in 2026. 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.
See our latest analysis for Nano-X Imaging
The consensus price target fell 19% to US$4.13, with the analysts clearly concerned about the company following the weaker revenue and earnings outlook.
Of course, another way to look at these forecasts is to place them into context against the industry itself. It's clear from the latest estimates that Nano-X Imaging's rate of growth is expected to accelerate meaningfully, with the forecast 103% annualised revenue growth to the end of 2026 noticeably faster than its historical growth of 31% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 4.9% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Nano-X Imaging 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 Nano-X Imaging. While analysts did downgrade their revenue estimates, these forecasts still imply revenues will 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.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have analyst estimates for Nano-X Imaging going out as far as 2028, 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 with high insider ownership.
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