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Zynex, Inc. (NASDAQ:ZYXI) just released its latest full-year report and things are not looking great. It wasn't a great result overall - while revenue fell marginally short of analyst estimates at US$192m, statutory earnings missed forecasts by an incredible 55%, coming in at just US$0.09 per share. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Zynex after the latest results.
See our latest analysis for Zynex
Taking into account the latest results, the three analysts covering Zynex provided consensus estimates of US$139.4m revenue in 2025, which would reflect a disturbing 28% decline over the past 12 months. Earnings are expected to tip over into lossmaking territory, with the analysts forecasting statutory losses of -US$0.49 per share in 2025. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$239.6m and earnings per share (EPS) of US$0.48 in 2025. So we can see that the consensus has become notably more bearish on Zynex's outlook following these results, with a large cut to next year's revenue estimates. Furthermore, they expect the business to be loss-making next year, compared to their previous calls for a profit.
The average price target fell 14% to US$15.00, implicitly signalling that lower earnings per share are a leading indicator for Zynex's valuation. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic Zynex analyst has a price target of US$24.50 per share, while the most pessimistic values it at US$5.50. So we wouldn't be assigning too much credibility to analyst price targets in this case, because there are clearly some widely different views on what kind of performance this business can generate. As a result it might not be a great idea to make decisions based on the consensus price target, which is after all just an average of this wide range of estimates.
Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 28% by the end of 2025. This indicates a significant reduction from annual growth of 24% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 7.7% per year. It's pretty clear that Zynex's revenues are expected to perform substantially worse than the wider industry.