The first-quarter results for Inspire Medical Systems, Inc. (NYSE:INSP) were released last week, making it a good time to revisit its performance. It was overall a positive result, with revenues beating expectations by 3.3% to hit US$201m. Inspire Medical Systems also reported a statutory profit of US$0.10, which was a nice improvement from the loss that the analysts were predicting. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Inspire Medical Systems after the latest results.

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Taking into account the latest results, the current consensus from Inspire Medical Systems' 18 analysts is for revenues of US$949.2m in 2025. This would reflect a solid 13% increase on its revenue over the past 12 months. Statutory per share are forecast to be US$2.26, approximately in line with the last 12 months. In the lead-up to this report, the analysts had been modelling revenues of US$949.2m and earnings per share (EPS) of US$2.16 in 2025. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

View our latest analysis for Inspire Medical Systems

The consensus price target was unchanged at US$214, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. 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 Inspire Medical Systems, with the most bullish analyst valuing it at US$270 and the most bearish at US$172 per share. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that Inspire Medical Systems' revenue growth is expected to slow, with the forecast 18% annualised growth rate until the end of 2025 being well below the historical 41% 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) 8.1% per year. So it's pretty clear that, while Inspire Medical Systems' revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

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The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Inspire Medical Systems' earnings potential next year. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at US$214, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Inspire Medical Systems going out to 2027, and you can see them free on our platform here.

We also provide an overview of the Inspire Medical Systems Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock,  here.

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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.