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A week ago, Delcath Systems, Inc. (NASDAQ:DCTH) came out with a strong set of quarterly numbers that could potentially lead to a re-rate of the stock. The company beat forecasts, with revenue of US$20m, some 2.9% above estimates, and statutory earnings per share (EPS) coming in at US$0.03, 100% ahead of expectations. 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've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
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Taking into account the latest results, the most recent consensus for Delcath Systems from six analysts is for revenues of US$94.5m in 2025. If met, it would imply a sizeable 75% increase on its revenue over the past 12 months. Delcath Systems is also expected to turn profitable, with statutory earnings of US$0.028 per share. Before this earnings announcement, the analysts had been modelling revenues of US$83.5m and losses of US$0.14 per share in 2025. So we can see that the latest results have sparked a pretty clear upgrade to expectations, with higher revenues expected to lead to profit sooner than previously forecast.
Check out our latest analysis for Delcath Systems
Despite these upgrades,the analysts have not made any major changes to their price target of US$23.00, suggesting that the higher estimates are not likely to have a long term impact on what the stock is worth. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values Delcath Systems at US$25.00 per share, while the most bearish prices it at US$21.00. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.
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. The analysts are definitely expecting Delcath Systems' growth to accelerate, with the forecast 112% annualised growth to the end of 2025 ranking favourably alongside historical growth of 70% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 8.2% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Delcath Systems is expected to grow much faster than its industry.