Shareholders of Alphatec Holdings, Inc. (NASDAQ:ATEC) will be pleased this week, given that the stock price is up 18% to US$12.53 following its latest annual results. The statutory results were mixed overall, with revenues of US$612m in line with analyst forecasts, but losses of US$1.13 per share, some 3.5% 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Alphatec Holdings after the latest results.
Check out our latest analysis for Alphatec Holdings
Taking into account the latest results, the current consensus from Alphatec Holdings' ten analysts is for revenues of US$732.3m in 2025. This would reflect a solid 20% increase on its revenue over the past 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 37% to US$0.72. Before this latest report, the consensus had been expecting revenues of US$732.8m and US$0.64 per share in losses. So it's pretty clear the analysts have mixed opinions on Alphatec Holdings even after this update; although they reconfirmed their revenue numbers, it came at the cost of a noticeable increase in per-share losses.
The consensus price target held steady at US$17.63, seemingly implying that the higher forecast losses are not expected to have a long term impact on the company's valuation. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Alphatec Holdings at US$22.50 per share, while the most bearish prices it at US$11.00. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.
Of course, another way to look at these forecasts is to place them into context against the industry itself. It's pretty clear that there is an expectation that Alphatec Holdings' revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 20% growth on an annualised basis. This is compared to a historical growth rate of 33% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 7.8% annually. Even after the forecast slowdown in growth, it seems obvious that Alphatec Holdings is also expected to grow faster than the wider industry.
The Bottom Line
The most important thing to take away is that the analysts increased their loss per share estimates for next year. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than 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 in mind, we wouldn't be too quick to come to a conclusion on Alphatec Holdings. Long-term earnings power is much more important than next year's profits. We have forecasts for Alphatec Holdings going out to 2027, and you can see them free on our platform here.
It might also be worth considering whether Alphatec Holdings' debt load is appropriate, using our debt analysis tools on the Simply Wall St platform, here.
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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.
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