As you might know, Outset Medical, Inc. (NASDAQ:OM) last week released its latest second-quarter, and things did not turn out so great for shareholders. Unfortunately, Outset Medical delivered a serious earnings miss. Revenues of US$27m were 12% below expectations, and statutory losses ballooned 32% to US$0.66 per share. 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 collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

See our latest analysis for Outset Medical

After the latest results, the consensus from Outset Medical's eight analysts is for revenues of US$110.2m in 2024, which would reflect a noticeable 5.3% decline in revenue compared to the last year of performance. The loss per share is expected to greatly reduce in the near future, narrowing 26% to US$2.27. Before this latest report, the consensus had been expecting revenues of US$146.5m and US$1.99 per share in losses. So there's been quite a change-up of views after the recent consensus updates, withthe analysts making a serious cut to their revenue outlook while also expecting losses per share to increase.

The consensus price target fell 39% to US$3.54, with the analysts clearly concerned about the company following the weaker revenue and earnings outlook. 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 Outset Medical at US$6.00 per share, while the most bearish prices it at US$1.75. So we wouldn't be assigning too much credibility to analyst price targets in this case, because there are clearly some widely different views on what kind of performance this business can generate. With this in mind, we wouldn't rely too heavily the consensus price target, as it is just an average and analysts clearly have some deeply divergent views on the business.

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. We would highlight that revenue is expected to reverse, with a forecast 10% annualised decline to the end of 2024. That is a notable change from historical growth of 12% over the last three years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 8.2% per year. It's pretty clear that Outset Medical's revenues are expected to perform substantially worse than the wider industry.