- Oops!Something went wrong.Please try again later.
Anika Therapeutics, Inc. (NASDAQ:ANIK) shareholders are probably feeling a little disappointed, since its shares fell 5.6% to US$34.64 in the week after its latest yearly results. Revenues were in line with expectations, at US$130m, while statutory losses ballooned to US$1.69 per share. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
Taking into account the latest results, the most recent consensus for Anika Therapeutics from two analysts is for revenues of US$150.3m in 2021 which, if met, would be a decent 15% increase on its sales over the past 12 months. Earnings are expected to improve, with Anika Therapeutics forecast to report a statutory profit of US$0.38 per share. Before this earnings report, the analysts had been forecasting revenues of US$150.3m and earnings per share (EPS) of US$0.38 in 2021. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.
With no major changes to earnings forecasts, the consensus price target fell 8.7% to US$47.50, suggesting that the analysts might have previously been hoping for an earnings upgrade.
Of course, another way to look at these forecasts is to place them into context against the industry itself. It's clear from the latest estimates that Anika Therapeutics' rate of growth is expected to accelerate meaningfully, with the forecast 15% annualised revenue growth to the end of 2021 noticeably faster than its historical growth of 4.7% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 18% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Anika Therapeutics is expected to grow at about the same rate as the wider industry.
The Bottom Line
The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Anika Therapeutics' future valuation.
Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have analyst estimates for Anika Therapeutics going out as far as 2023, and you can see them free on our platform here.
You still need to take note of risks, for example - Anika Therapeutics has 1 warning sign we think you should be aware of.
This article by Simply Wall St is general in nature. 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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.