CorMedix, Inc. (NYSEMKT:CRMD) Just Reported Earnings, And Analysts Cut Their Target Price
CorMedix, Inc. (NYSEMKT:CRMD) missed earnings with its latest yearly results, disappointing overly-optimistic forecasters. Unfortunately, CorMedix delivered a serious earnings miss. Revenues of US$283k were 20% below expectations, and statutory losses ballooned 41% to US$1.80 per share. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on CorMedix after the latest results.
See our latest analysis for CorMedix
After the latest results, the dual analysts covering CorMedix are now predicting revenues of US$6.07m in 2020. If met, this would reflect a sizeable 2042% improvement in sales compared to the last 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 52% to US$0.87. Before this earnings announcement, the analysts had been modelling revenues of US$9.89m and losses of US$1.01 per share in 2020. 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.
The consensus price target fell 17% to US$12.00, with the dip in revenue estimates clearly souring sentiment, despite the forecast reduction in losses.
Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. It's clear from the latest estimates that CorMedix's rate of growth is expected to accelerate meaningfully, with the forecast 20x revenue growth noticeably faster than its historical growth of 18%p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 4.9% next year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect CorMedix to grow faster than the wider industry.
The Bottom Line
The most important thing to take away is that the analysts reconfirmed their loss per share estimates for next year. They also downgraded their revenue estimates, although industry data suggests that CorMedix's revenues are expected to grow faster than the wider industry. With that said, earnings are more important to the long-term value of the business. 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 said, the long-term trajectory of the company's earnings is a lot more important than next year. At least one analyst has provided forecasts out to 2023, which can be seen for free on our platform here.
Before you take the next step you should know about the 5 warning signs for CorMedix (1 is significant!) that we have uncovered.
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