B.R.A.I.N. Biotechnology Research and Information Network AG (ETR:BNN) just released its yearly report and things are looking bullish. Results overall were solid, with revenues arriving 9.7% better than analyst forecasts at €40m. Higher revenues also resulted in substantially lower statutory losses which, at €0.58 per share, were 9.7% smaller than analysts expected. This is an important time for investors, as they can track a company's performance in its report, look at what top analysts are forecasting for next year, and see if there has been any change to expectations for the business. So we gathered the latest post-earnings forecasts to see what analysts' statutory forecasts suggest is in store for next year.
Following the latest results, B.R.A.I.N. Biotechnology Research and Information Network's four analysts are now forecasting revenues of €43.5m in 2020. This would be a solid 8.6% improvement in sales compared to the last 12 months. Per-share statutory losses are expected to see a sharp uptick, reaching €0.47. Before this earnings announcement, analysts had been forecasting revenues of €40.0m and losses of €0.29 per share in 2020. While next year's revenue estimates increased, there was also a large cut to EPS expectations, suggesting the consensus has a bit of a mixed view of these results.
There was no major change to the consensus price target of €17.80, with growing revenues seemingly enough to offset the concern of growing losses. 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 B.R.A.I.N. Biotechnology Research and Information Network, with the most bullish analyst valuing it at €24.00 and the most bearish at €9.50 per share. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.
Zooming out to look at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up both against past performance, and against industry growth estimates. We would highlight that B.R.A.I.N. Biotechnology Research and Information Network's revenue growth is expected to slow, with forecast 8.6% increase next year well below the historical 15%p.a. growth over the last five years. By way of comparison, other companies in this market with analyst coverage, are forecast to grow their revenue at 3.8% next year. So it's pretty clear that, while B.R.A.I.N. Biotechnology Research and Information Network's revenue growth is expected to slow, it's still expected to grow faster than the market itself.
The Bottom Line
Pleasantly, analysts also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider market. The consensus price target held steady at €17.80, with the latest estimates not enough to have an impact on analysts' estimated valuations.
Still, the long-term prospects of the business are much more relevant than next year's earnings. We have forecasts for B.R.A.I.N. Biotechnology Research and Information Network going out to 2024, and you can see them free on our platform here.
Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months on our platform, here.
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