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Analyst Forecasts For Applied DNA Sciences, Inc. (NASDAQ:APDN) Are Surging Higher

Shareholders in Applied DNA Sciences, Inc. (NASDAQ:APDN) may be thrilled to learn that the analysts have just delivered a major upgrade to their near-term forecasts. The consensus statutory numbers for both revenue and earnings per share (EPS) increased, with their view clearly much more bullish on the company's business prospects.

After this upgrade, Applied DNA Sciences' two analysts are now forecasting revenues of US$18m in 2023. This would be a reasonable 2.7% improvement in sales compared to the last 12 months. Losses are expected to be contained, narrowing 17% from last year to US$0.79. However, before this estimates update, the consensus had been expecting revenues of US$20m and US$0.86 per share in losses. We can see there's definitely been a change in sentiment in this update, with the analysts administering a meaningful downgrade to next year's revenue estimates, while at the same time reducing their loss estimates.

Check out our latest analysis for Applied DNA Sciences

earnings-and-revenue-growth
earnings-and-revenue-growth

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. It's pretty clear that there is an expectation that Applied DNA Sciences' revenue growth will slow down substantially, with revenues to the end of 2023 expected to display 2.1% growth on an annualised basis. This is compared to a historical growth rate of 26% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 7.2% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Applied DNA Sciences.

The Bottom Line

Regrettably, they also downgraded their revenue estimates, and the latest forecasts imply the business will grow sales slower than the wider market. The clear improvement in sentiment should be enough to get most shareholders feeling more optimistic about Applied DNA Sciences' future.

Analysts are definitely bullish on Applied DNA Sciences, but no company is perfect. Indeed, you should know that there are several potential concerns to be aware of, including major dilution from new stock issuance in the past year. You can learn more, and discover the 2 other concerns we've identified, for free on our platform here.

Another way to search for interesting companies that could be reaching an inflection point is to track whether management are buying or selling, with our free list of growing companies that insiders are buying.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.

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