Bausch + Lomb Corporation (NYSE:BLCO) Yearly Results: Here's What Analysts Are Forecasting For This Year
Shareholders will be ecstatic, with their stake up 23% over the past week following Bausch + Lomb Corporation's (NYSE:BLCO) latest yearly results. It was a pretty bad result overall; while revenues were in line with expectations at US$4.1b, statutory losses exploded to US$0.74 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
Check out our latest analysis for Bausch + Lomb
After the latest results, the twelve analysts covering Bausch + Lomb are now predicting revenues of US$4.66b in 2024. If met, this would reflect a meaningful 12% improvement in revenue compared to the last 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 62% to US$0.28. Before this earnings announcement, the analysts had been modelling revenues of US$4.56b and losses of US$0.11 per share in 2024. So it's pretty clear the analysts have mixed opinions on Bausch + Lomb even after this update; although they upped their revenue numbers, it came at the cost of a considerable increase to per-share losses.
There was no major change to the consensus price target of US$19.82, with growing revenues seemingly enough to offset the concern of growing losses. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values Bausch + Lomb at US$26.00 per share, while the most bearish prices it at US$16.00. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Bausch + Lomb's past performance and to peers in the same industry. The analysts are definitely expecting Bausch + Lomb's growth to accelerate, with the forecast 12% annualised growth to the end of 2024 ranking favourably alongside historical growth of 2.2% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 7.8% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Bausch + Lomb to grow faster than the wider industry.
The Bottom Line
The most important thing to note is the forecast of increased losses next year, suggesting all may not be well at Bausch + Lomb. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. The consensus price target held steady at US$19.82, with the latest estimates not enough to have an impact on their price targets.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for Bausch + Lomb going out to 2026, and you can see them free on our platform here.
You should always think about risks though. Case in point, we've spotted 1 warning sign for Bausch + Lomb you should be aware of.
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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.
