Will PROF's Q4 earnings surprise boost future growth?

**Profound Medical's (PROF) Q4 earnings are unlikely to significantly boost future growth**, based on the following points: 1. **Challenging Financial Outlook**: PROF is expected to report an EPS of -$0.35 and revenue of $4.18 million for Q4 2024. This performance is below the analyst expectations of -$0.33 EPS and revenue of $4.27 million. The company's financials are also showing a decline in gross profit margin from 64.2% to 62.3% over the past two quarters. 2. **Consistent Revenue Growth Challenges**: PROF has a history of missing revenue expectations, with a 5.2% shortfall in Q3 2024. The company's revenue growth has been inconsistent, with a significant surge in Q3 2024 but a more modest increase in Q4 2024 compared to the previous year. 3. **Increased Expenses and Net Losses**: PROF's operating expenses have risen by 42% year-over-year, leading to a net loss of $9.36 million in Q3 2024. The company's transition to a cash pay model to a reimbursement-based model is posing challenges for achieving its goal of 75 installed systems by year-end. 4. **Analyst Expectations and Future Outlook**: Analysts expect PROF's FY2024 EPS to be -$1, with a consensus price target of C$24.42, indicating a cautious outlook on the company's future performance. The earnings estimates for future quarters, including Q1 2025, show a decline in EPS projections, which does not suggest a strong growth trajectory ahead. 5. **Market Performance and Investor Sentiment**: PROF's stock has experienced a decline of 2.4% and has been trading below its average volume. The company's market cap is valued at C$250.43 million, with a negative net margin of 350.14% and a negative return on equity of 71.28%. In conclusion, while PROF has shown some positive developments, such as a 64% revenue increase in Q3 2024 and the elevation of the Tulsa procedure's reimbursement rates, these factors do not appear to be translating into a strong earnings trajectory or significant growth potential in the near term. The company's financial performance and analyst expectations suggest that Q4 earnings are unlikely to be a catalyst for future growth.