Sight Sciences, Inc. (NASDAQ:SGHT) just released its latest quarterly results and things are looking bullish. It looks like a positive result overall, with revenues of US$25m beating forecasts by 5.3%. Statutory losses of US$0.12 per share were 5.3% smaller than the analysts expected, likely helped along by the higher revenues. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
Taking into account the latest results, the consensus forecast from Sight Sciences' eight analysts is for revenues of US$102.2m in 2027. This reflects a notable 16% improvement in revenue compared to the last 12 months. Losses are supposed to decline, shrinking 11% from last year to US$0.45. Before this earnings announcement, the analysts had been modelling revenues of US$101.0m and losses of US$0.43 per share in 2027. So it's pretty clear consensus is mixed on Sight Sciences after the new consensus numbers; while the analysts held their revenue numbers steady, they also administered a modest increase to per-share loss expectations.
See our latest analysis for Sight Sciences
Despite expectations of heavier losses next year,the analysts have lifted their price target 13% to US$10.17, perhaps implying these losses are not expected to be recurring over the long term. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. There are some variant perceptions on Sight Sciences, with the most bullish analyst valuing it at US$14.00 and the most bearish at US$8.00 per share. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Sight Sciences shareholders.
One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. It's clear from the latest estimates that Sight Sciences' rate of growth is expected to accelerate meaningfully, with the forecast 12% annualised revenue growth to the end of 2027 noticeably faster than its historical growth of 8.2% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 7.5% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Sight Sciences to grow faster than the wider industry.
The Bottom Line
The most important thing to note is the forecast of increased losses next year, suggesting all may not be well at Sight Sciences. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.
With that in mind, we wouldn't be too quick to come to a conclusion on Sight Sciences. 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 Sight Sciences going out to 2028, and you can see them free on our platform here..
And what about risks? Every company has them, and we've spotted 2 warning signs for Sight Sciences you should know about.
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