Shareholders will be ecstatic, with their stake up 39% over the past week following Pulmonx Corporation's (NASDAQ:LUNG) latest second-quarter results. It was a respectable set of results; while revenues of US$23m were in line with analyst predictions, statutory losses were 14% smaller than expected, with Pulmonx losing US$0.24 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

After the latest results, the five analysts covering Pulmonx are now predicting revenues of US$90.5m in 2026. If met, this would reflect a reasonable 3.6% improvement in revenue compared to the last 12 months. The loss per share is expected to ameliorate slightly, reducing to US$1.03. Before this latest report, the consensus had been expecting revenues of US$90.8m and US$1.14 per share in losses. So there seems to have been a moderate uplift in analyst sentiment with the latest consensus release, given the upgrade to loss per share forecasts for this year.

Even with the lower forecast losses, the analysts lowered their valuations, with the average price target falling 41% to US$3.40. It looks likethe analysts have become less optimistic about the overall business. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values Pulmonx at US$5.00 per share, while the most bearish prices it at US$2.50. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Pulmonx's past performance and to peers in the same industry. We would highlight that Pulmonx's revenue growth is expected to slow, with the forecast 7.2% annualised growth rate until the end of 2026 being well below the historical 16% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 7.6% annually. So it's pretty clear that, while Pulmonx's revenue growth is expected to slow, it's expected to grow roughly in line with the industry.

The Bottom Line

The most important thing to take away is that the analysts reconfirmed their loss per share estimates for next year. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Pulmonx's future valuation.

With that in mind, we wouldn't be too quick to come to a conclusion on Pulmonx. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Pulmonx going out to 2028, and you can see them free on our platform here..

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.