Uncovering Potential: Outset Medical's Earnings Preview
Outset Medical (NASDAQ:OM) is preparing to release its quarterly earnings on Wednesday, 2025-08-06. Here's a brief overview of what investors should keep in mind before the announcement.
Analysts expect Outset Medical to report an earnings per share (EPS) of $-1.47.
Outset Medical bulls will hope to hear the company announce they've not only beaten that estimate, but also to provide positive guidance, or forecasted growth, for the next quarter.
New investors should note that it is sometimes not an earnings beat or miss that most affects the price of a stock, but the guidance (or forecast).
Earnings Track Record
During the last quarter, the company reported an EPS missed by $1.32, leading to a 35.26% increase in the share price on the subsequent day.
Here's a look at Outset Medical's past performance and the resulting price change:
| Quarter | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 |
|---|---|---|---|---|
| EPS Estimate | -1.92 | -6.15 | -6.30 | -6.75 |
| EPS Actual | -3.24 | -5.55 | -5.85 | -7.05 |
| Price Change % | 35.0% | 2.0% | 25.0% | -69.0% |
Performance of Outset Medical Shares
Shares of Outset Medical were trading at $14.16 as of August 04. Over the last 52-week period, shares are down 72.35%. Given that these returns are generally negative, long-term shareholders are likely a little upset going into this earnings release.
Analyst Opinions on Outset Medical
For investors, staying informed about market sentiments and expectations in the industry is paramount. This analysis provides an exploration of the latest insights on Outset Medical.
A total of 2 analyst ratings have been received for Outset Medical, with the consensus rating being Neutral. The average one-year price target stands at $17.5, suggesting a potential 23.59% upside.
Understanding Analyst Ratings Among Peers
The below comparison of the analyst ratings and average 1-year price targets of Tactile Systems Tech, BrainsWay and NeuroPace, three prominent players in the industry, gives insights for their relative performance expectations and market positioning.
- Analysts currently favor an Neutral trajectory for Tactile Systems Tech, with an average 1-year price target of $13.0, suggesting a potential 8.19% downside.
- Analysts currently favor an Buy trajectory for BrainsWay, with an average 1-year price target of $16.0, suggesting a potential 12.99% upside.
- Analysts currently favor an Outperform trajectory for NeuroPace, with an average 1-year price target of $17.0, suggesting a potential 20.06% upside.
Snapshot: Peer Analysis
The peer analysis summary outlines pivotal metrics for Tactile Systems Tech, BrainsWay and NeuroPace, demonstrating their respective standings within the industry and offering valuable insights into their market positions and comparative performance.
| Company | Consensus | Revenue Growth | Gross Profit | Return on Equity |
|---|---|---|---|---|
| Outset Medical | Neutral | 5.62% | $11.07M | -26.74% |
| Tactile Systems Tech | Neutral | 0.29% | $45.35M | -1.41% |
| BrainsWay | Buy | 26.84% | $8.61M | 1.76% |
| NeuroPace | Outperform | 24.28% | $17.34M | -40.82% |
Key Takeaway:
Outset Medical ranks at the bottom for Revenue Growth among its peers. It is also at the bottom for Gross Profit. However, it is at the top for Return on Equity. The consensus rating for Outset Medical is neutral, similar to one of its peers, while the other two peers have different ratings.
Get to Know Outset Medical Better
Outset Medical Inc is a medical technology company pioneering a first-of-its-kind technology to reduce the cost and complexity of dialysis. The Company generates revenue from the sales of Tablo consoles and related consumables, including Tablo cartridges and accessories.
Key Indicators: Outset Medical's Financial Health
Market Capitalization Analysis: Below industry benchmarks, the company's market capitalization reflects a smaller scale relative to peers. This could be attributed to factors such as growth expectations or operational capacity.
Positive Revenue Trend: Examining Outset Medical's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 5.62% as of 31 March, 2025, showcasing a substantial increase in top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Health Care sector.
Net Margin: The company's net margin is below industry benchmarks, signaling potential difficulties in achieving strong profitability. With a net margin of -86.66%, the company may need to address challenges in effective cost control.
Return on Equity (ROE): Outset Medical's ROE falls below industry averages, indicating challenges in efficiently using equity capital. With an ROE of -26.74%, the company may face hurdles in generating optimal returns for shareholders.
Return on Assets (ROA): Outset Medical's ROA lags behind industry averages, suggesting challenges in maximizing returns from its assets. With an ROA of -8.94%, the company may face hurdles in achieving optimal financial performance.
Debt Management: Outset Medical's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.59.
To track all earnings releases for Outset Medical visit their earnings calendar on our site.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
