Butterfly Network, Inc. (NYSE:BFLY) investors will be delighted, with the company turning in some strong numbers with its latest results. It looks like a positive result overall, with revenues of US$21m beating forecasts by 8.2%. Statutory losses of US$0.08 per share were 8.2% smaller than the analysts expected, likely helped along by the higher revenues. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

View our latest analysis for Butterfly Network

After the latest results, the three analysts covering Butterfly Network are now predicting revenues of US$95.3m in 2025. If met, this would reflect a sizeable 25% improvement in revenue compared to the last 12 months. Losses are predicted to fall substantially, shrinking 27% to US$0.34. Before this latest report, the consensus had been expecting revenues of US$91.7m and US$0.39 per share in losses. There's been a pretty noticeable increase in sentiment, with the analysts upgrading revenues and making a favorable reduction in loss per share in particular.

The consensus price target rose 8.3% to US$3.25, with the analysts encouraged by the higher revenue and lower forecast losses for next year. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Butterfly Network, with the most bullish analyst valuing it at US$3.75 and the most bearish at US$3.00 per share. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Butterfly Network is an easy business to forecast or the the analysts are all using similar assumptions.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Butterfly Network's past performance and to peers in the same industry. It's clear from the latest estimates that Butterfly Network's rate of growth is expected to accelerate meaningfully, with the forecast 20% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 13% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 8.3% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Butterfly Network is expected to grow much faster than its 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, they also upgraded their revenue estimates, and are forecasting them to grow faster than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for Butterfly Network going out to 2026, and you can see them free on our platform here.

However, before you get too enthused, we've discovered 3 warning signs for Butterfly Network that you should be aware of.

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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.