Priya PatelTLDR:
– Tactile Systems Technology, Inc. (NASDAQ:TCMD) beat earnings expectations, with revenues in line but EPS surpassing analyst predictions by 11%.
– Analysts are predicting a 10% revenue improvement in 2024, but a 53% drop in EPS.
Shareholders of Tactile Systems Technology, Inc. (NASDAQ:TCMD) were dismayed to see the stock drop by 7.5% after the company filed its yearly results, despite a positive performance in earnings per share (EPS) compared to analyst expectations. The four analysts covering the company are now forecasting a revenue increase of 10% in 2024, along with a significant decrease of 53% in EPS. While the revenue forecasts have been revised downwards, there is optimism surrounding the company’s cost base, leading to an upgrade in EPS forecasts. The consensus price target has fallen 14% to US$20.67, indicating a more pessimistic outlook on the company’s intrinsic value. Despite the mixed forecasts, Tactile Systems Technology is expected to outperform the broader industry in terms of revenue growth. The analysts’ views on the business vary, but the range of estimates does not suggest extreme outcomes for shareholders.
The most notable takeaway is the consensus upgrade in EPS, signaling improved sentiment around Tactile Systems Technology’s earnings potential. While revenue estimates were cut, the company is expected to grow faster than the industry average. However, the price targets were reduced, indicating greater pessimism on the business’s value. Long-term prospects may be more relevant than next year’s earnings, and analysts’ estimates for Tactile Systems Technology go up to 2025. Investors are encouraged to conduct comprehensive analysis to determine if the stock is potentially over or undervalued.
