Bioceres Crop Solutions Corp. Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now
Investors in Bioceres Crop Solutions Corp. (NASDAQ:BIOX) had a good week, as its shares rose 7.2% to close at US$13.57 following the release of its quarterly results. Results overall were not great, with earnings of US$0.0016 per share falling drastically short of analyst expectations. Meanwhile revenues hit US$140m and were slightly better than forecasts. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
See our latest analysis for Bioceres Crop Solutions
Taking into account the latest results, the most recent consensus for Bioceres Crop Solutions from five analysts is for revenues of US$495.9m in 2024. If met, it would imply a meaningful 9.1% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to surge 29% to US$0.45. Before this earnings report, the analysts had been forecasting revenues of US$471.8m and earnings per share (EPS) of US$0.64 in 2024. 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.
The consensus price target fell 5.7% to US$20.00, suggesting that the analysts are primarily focused on earnings as the driver of value for this business. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. The most optimistic Bioceres Crop Solutions analyst has a price target of US$25.00 per share, while the most pessimistic values it at US$15.00. 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.
One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We would highlight that Bioceres Crop Solutions' revenue growth is expected to slow, with the forecast 19% annualised growth rate until the end of 2024 being well below the historical 26% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 4.2% per year. Even after the forecast slowdown in growth, it seems obvious that Bioceres Crop Solutions is also expected to grow faster than the wider industry.
The Bottom Line
The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Happily, they also upgraded their revenue estimates, and are forecasting them to grow faster than the wider industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.
With that in mind, we wouldn't be too quick to come to a conclusion on Bioceres Crop Solutions. Long-term earnings power is much more important than next year's profits. We have forecasts for Bioceres Crop Solutions going out to 2026, and you can see them free on our platform here.
Even so, be aware that Bioceres Crop Solutions is showing 1 warning sign in our investment analysis , you should know about...
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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.
