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On Monday, H.C. Wainwright increased the stock price target for Sensus Healthcare (NASDAQ: NASDAQ:SRTS) to $11.00, up from the previous $10.00, while maintaining a Buy rating on the stock. The firm's decision came after Sensus Healthcare's impressive third-quarter financial performance, which showcased a significant year-over-year revenue growth and exceeded expectations.
Last week, Sensus Healthcare announced its financial results for the third quarter of 2024. The company reported a total revenue of $8.8 million, a 127% increase from the previous year, surpassing the analyst's forecast of $5.4 million. Additionally, the net income for the quarter was $1.2 million, or $0.07 per share, which was notably better than the predicted loss of $0.3 million.
The company's growth was partly attributed to the successful shipment of 27 SRT systems during the third quarter, including one SRT-100 unit to an international customer. This figure marked an increase from the 11 systems shipped in the same quarter the previous year and 23 systems in the second quarter of 2024. Sensus Healthcare also expanded its Fair Deal Agreements to include seven SRT-100 Vision units, totaling 22 units since the program's inception in March 2024.
Furthermore, Sensus Healthcare secured a significant Fair Deal Agreement with a large network of dermatology clinics, which includes over 130 locations across the United States. This development surpassed the company's target of 50 such agreements by the end of 2024. The analyst anticipates that the systems sold under the Fair Deal Agreement will contribute to recurring revenue and will be monitored using the company's Sentinel IT software.
The analyst projects that Sensus Healthcare could ship over 100 SRT systems in 2024. With a projected revenue of $2.42 per share for the next 12 months, from the fourth quarter of 2024 to the third quarter of 2025, and considering an enterprise value-to-revenue multiple of 4.0x along with the company's cash position, the analyst has set a price target of approximately $11 per share.
In other recent news, Sensus Healthcare experienced a robust growth in Q3 2024, with revenues reaching $8.8 million, a significant 127% increase from the same period in the previous year. This growth was largely due to the shipment of 27 SRT systems, including a key shipment to Israel. Furthermore, the company reported a net income of $1.2 million, marking a considerable improvement from a net loss in Q3 2023.
Sensus Healthcare's partnership with Platinum Dermatology Partners, covering 130 U.S. sites, is anticipated to enhance revenue from 2025 onwards. The company also maintains a strong cash position, with $22.6 million in reserves and no debt, positioning it well for future growth.
However, Sensus Healthcare did not provide specific guidance on the target number of systems to be shipped and Fair Deal Agreements for 2025. Despite this, CEO Joseph Sardano expressed optimism about the company's trajectory due to the strength of their technology and software.
These are among the recent developments for Sensus Healthcare, which is expecting to maintain a gross margin around 60% for Q4 2024 and is focused on expanding its market reach, especially in non-melanoma skin cancer treatment and international markets.
InvestingPro Insights
Sensus Healthcare's recent financial performance and the positive analyst outlook are further supported by real-time data from InvestingPro. The company's revenue growth is particularly noteworthy, with a 65.62% increase over the last twelve months as of Q3 2024, and an impressive 126.76% quarterly growth in Q3 2024. This aligns well with the strong revenue figures reported in the company's recent earnings announcement.
InvestingPro Tips highlight that Sensus Healthcare holds more cash than debt on its balance sheet and has liquid assets exceeding short-term obligations, indicating a solid financial position. This financial stability could support the company's expansion plans and the execution of Fair Deal Agreements mentioned in the article.
The company's profitability is also emphasized, with InvestingPro data showing a P/E ratio of 13.43 and a gross profit margin of 60.9% for the last twelve months as of Q3 2024. These figures suggest that Sensus Healthcare is not only growing rapidly but also maintaining healthy profit margins.
For investors seeking more comprehensive analysis, InvestingPro offers 12 additional tips for Sensus Healthcare, providing a deeper understanding of the company's financial health and market performance.
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