One thing we could say about the analysts on AirSculpt Technologies, Inc. (NASDAQ:AIRS) - they aren't optimistic, having just made a major negative revision to their near-term (statutory) forecasts for the organization. Revenue estimates were cut sharply as analysts signalled a weaker outlook - perhaps a sign that investors should temper their expectations as well.

After the downgrade, the consensus from AirSculpt Technologies' three analysts is for revenues of US$186m in 2024, which would reflect a small 3.7% decline in sales compared to the last year of performance. Losses are predicted to fall substantially, shrinking 33% to US$0.04 per share. Before this latest update, the analysts had been forecasting revenues of US$212m and earnings per share (EPS) of US$0.24 in 2024. There looks to have been a major change in sentiment regarding AirSculpt Technologies' prospects, with a substantial drop in revenues and the analysts now forecasting a loss instead of a profit.

Check out our latest analysis for AirSculpt Technologies

The consensus price target fell 32% to US$3.38, implicitly signalling that lower earnings per share are a leading indicator for AirSculpt Technologies' valuation.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. These estimates imply that sales are expected to slow, with a forecast annualised revenue decline of 7.3% by the end of 2024. This indicates a significant reduction from annual growth of 18% over the last three years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 6.8% annually for the foreseeable future. It's pretty clear that AirSculpt Technologies' revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The most important thing to take away is that analysts are expecting AirSculpt Technologies to become unprofitable this year. Regrettably, they also downgraded their revenue estimates, and the latest forecasts imply the business will grow sales slower than the wider market. The consensus price target fell measurably, with analysts seemingly not reassured by recent business developments, leading to a lower estimate of AirSculpt Technologies' future valuation. Given the stark change in sentiment, we'd understand if investors became more cautious on AirSculpt Technologies after today.

Still, the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple AirSculpt Technologies analysts - going out to 2026, and you can see them free on our platform here.

Another way to search for interesting companies that could be reaching an inflection point is to track whether management are buying or selling, with our free list of growing companies backed by insiders.

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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.