Can SENS sustain its earnings growth into 2025?
4/6/2025 03:42pm
**Senseonics Holdings (SENS) faces challenges in sustaining its earnings growth into 2025**, and here's why:
1. **Financial Performance Issues**: SENS reported a net loss of $15.48 million with a negative EBITDA of $73.4 million in the last twelve months. The company's gross profit for 2024 was $0.5 million, down from $3.1 million in the previous year. This indicates significant profitability challenges that need to be addressed.
|code|Ticker|Name|Date|Total Revenue|Net Income|Diluted EPS|market_code|
|---|---|---|---|---|---|---|---|
|SENS|SENS.A|Senseonics Holdings|2024 Q1|5047000|-1.8877E7|-0.03|170|
|SENS|SENS.A|Senseonics Holdings|2024 Q2|4865000|-2.0287E7|-0.03|170|
|SENS|SENS.A|Senseonics Holdings|2024 Q3|4263000|-2.3976E7|-0.04|170|
|SENS|SENS.A|Senseonics Holdings|2024 Q4|8297000|-1.5476E7||170|
|code|Ticker|Name|Date|Net Income YoY|Total Revenue YoY|Diluted EPS YoY|market_code|
|---|---|---|---|---|---|---|---|
|SENS|SENS.A|Senseonics Holdings|2024 Q1|-1525.7552870090635|21.99661590524535||170|
|SENS|SENS.A|Senseonics Holdings|2024 Q2|0.6659158791558537|17.910809500727094|25.000000000000007|170|
|SENS|SENS.A|Senseonics Holdings|2024 Q3|0.526905364477451|-30.080367393800227|0|170|
|SENS|SENS.A|Senseonics Holdings|2024 Q4|9.970913321698662|3.3250311332503113||170|
2. **Revenue Growth Slowdown**: While SENS reported a revenue growth rate of 3.33% with total revenue of $8.3 million, the growth rate is relatively low, and the full-year revenue for 2024 was $22.5 million, which is slightly higher than the previous year's $22.4 million. This suggests that sustaining revenue growth could be difficult, especially given the existing base.
3. **Diluted EPS Decline**: The diluted EPS growth rate is not available, but the last change in the diluted EPS was a decrease of 7.05%. This decline in EPS, combined with the net income loss, indicates that the company's earnings per share are also under pressure.
4. **Analyst Target and Rating**: The average analyst price target is $2, with a consensus rating of "Strong Buy". This suggests that analysts see potential in the stock, but the target price is significantly higher than the current price, indicating that achieving this target may be challenging.
5. **Market Opportunities and Challenges**: SENS has seen a significant increase in its patient base, growing 56% year-over-year to approximately 6,000 global patients. The launch of the Eversense 365 CGM system has been a pivotal moment for the company, and it has partnered with Ascensia Diabetes Care to expand its marketing efforts. However, the company faces challenges such as transitioning US reimbursement from Eversense E3 to Eversense 365 and maintaining profitability.
In conclusion, while SENS has made strides with the launch of the Eversense 365 and partnerships for market expansion, the company's financial performance indicators and challenges suggest that sustaining earnings growth into 2025 will be difficult. The company needs to address profitability issues, manage revenue growth sustainably, and capitalize on market opportunities to achieve sustained earnings growth.