Texas Roadhouse earnings missed by $0.05, revenue topped estimates
Investing.com - Canaccord Genuity lowered its price target on Neuronetics (NASDAQ:STIM) to $7.00 from $8.00 on Wednesday, while maintaining a Buy rating on the stock. The medical device company, with a market capitalization of $300 million, has seen its stock surge over 180% year-to-date according to InvestingPro data.
The adjustment follows Neuronetics’ second-quarter earnings report, which showed revenue of $38.1 million, exceeding both Canaccord’s estimate of $37.2 million and the consensus forecast of $36.8 million. The company’s performance was primarily driven by Clinic/Greenbrook revenue, building on its impressive 22% revenue growth over the last twelve months. InvestingPro analysis shows the company maintains a healthy current ratio of 2.44, indicating strong short-term liquidity.
Despite the revenue beat, Neuronetics reduced its gross margin guidance while maintaining its revenue outlook. The company cited the increasing proportion of Clinic revenue in its business mix as the reason for the margin adjustment.
Neuronetics outlined three strategic priorities: executing on Greenbrook growth, scaling its Better-Me-Provider program, and improving operating efficiencies. The company appears to be shifting its strategy toward engaging referring physicians who can direct patients to treatment sites managed by the company.
Canaccord noted that while cash flow performance and the outlook for the second half of 2025 are lower than previously expected, the firm still believes Neuronetics can achieve cash flow positivity by year-end 2025, which it considers "crucial for long-term viability of the business." With analyst targets ranging from $5.50 to $8.00, investors seeking deeper insights can access comprehensive financial analysis and additional ProTips through InvestingPro’s detailed research reports.
In other recent news, Neuronetics Inc. announced its financial results for the second quarter of 2025, highlighting a significant earnings per share (EPS) shortfall. The company reported an EPS of -$0.15, which fell short of the anticipated -$0.08, marking an 87.5% deviation from forecasts. Despite this earnings miss, Neuronetics reported revenue of $38.1 million, exceeding the expected $36.59 million by 4.15%. This revenue beat indicates some positive momentum for the company, even as investors expressed concerns over the earnings figures.
These developments have drawn attention from investors and analysts alike. The financial results reflect the ongoing challenges and opportunities facing Neuronetics in the current market environment. While the revenue figures provide some optimism, the larger-than-expected loss per share has prompted a reevaluation of the company’s financial health. The mixed results underscore the importance of closely monitoring Neuronetics’ future performance.
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