Cryoport, Inc. (NASDAQ:CYRX) Consensus Forecasts Have Become A Little Darker Since Its Latest Report
It's been a pretty great week for Cryoport, Inc. (NASDAQ:CYRX) shareholders, with its shares surging 15% to US$20.74 in the week since its latest quarterly results. It was a pretty bad result overall; while revenues were in line with expectations at US$9.8m, statutory losses exploded to US$0.11 per share. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
Check out our latest analysis for Cryoport
After the latest results, the seven analysts covering Cryoport are now predicting revenues of US$42.2m in 2020. If met, this would reflect a solid 14% improvement in sales compared to the last 12 months. Losses are predicted to fall substantially, shrinking 39% to US$0.34. Before this latest report, the consensus had been expecting revenues of US$44.5m and US$0.21 per share in losses. So it's pretty clear the analysts have mixed opinions on Cryoport after this update; revenues were downgraded and per-share losses expected to increase.
The average price target was broadly unchanged at US$24.71, perhaps implicitly signalling that the weaker earnings outlook is not expected to have a long-term impact on the valuation. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values Cryoport at US$30.00 per share, while the most bearish prices it at US$23.00. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.
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. It's pretty clear that there is an expectation that Cryoport's revenue growth will slow down substantially, with revenues next year expected to grow 14%, compared to a historical growth rate of 43% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 9.3% next year. Even after the forecast slowdown in growth, it seems obvious that Cryoport is also expected to grow faster than the wider industry.
The Bottom Line
The most important thing to take away is that the analysts increased their loss per share estimates for next year. They also downgraded their revenue estimates, although industry data suggests that Cryoport's revenues are expected to grow faster than the wider industry. The consensus price target held steady at US$24.71, with the latest estimates not enough to have an impact on their price targets.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Cryoport analysts - going out to 2024, and you can see them free on our platform here.
You still need to take note of risks, for example - Cryoport has 2 warning signs we think you should be aware of.
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