Milestone Scientific Inc. (NYSEMKT:MLSS) just released its latest quarterly results and things are looking bullish. Results overall were solid, with revenues arriving 4.3% better than analyst forecasts at US$1.9m. Higher revenues also resulted in substantially lower losses which, at US$0.06 per share, were 4.3% 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 collected the latest post-earnings consensus estimates to see what could be in store for next year.
Taking into account the latest results, the latest consensus from Milestone Scientific's lone analyst is for revenues of US$13.0m in 2020, which would reflect a sizeable 32% improvement in sales compared to the last 12 months. Losses are forecast to balloon 81% to US$0.02 per share. Before this latest report, the consensus had been expecting revenues of US$12.8m and US$0.06 per share in losses. Although the revenue estimates have not really changed, we can see there's been a considerable lift to earnings per share expectations, suggesting that analysts have become more bullish after the latest result.
The average analyst price target rose 100% to US$2.00, with analyst signalling that the forecast reduction in losses would be a positive for the stock's valuation.
Further, we can compare these estimates to past performance, and see how Milestone Scientific forecasts compare to the wider market's forecast performance. For example, we noticed that Milestone Scientific's rate of growth is expected to accelerate meaningfully, with revenues forecast to grow at 32%, well above its historical decline of 1.7% a year over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in the market are forecast to see their revenue grow 8.2% per year. Although Milestone Scientific's revenues are expected to improve, it seems that analysts are also expecting it to grow faster than the wider market.
The Bottom Line
The most important thing to note from these estimates is that the consensus increased its forecast losses next year, suggesting all may not be well at Milestone Scientific. Happily, there were no major changes to revenue forecasts, with analysts still expecting the business to grow faster than the wider market. There was also a nice increase in the price target, with analysts feeling that the intrinsic value of the business is improving.
With that in mind, we wouldn't be too quick to come to a conclusion on Milestone Scientific. Long-term earnings power is much more important than next year's profits. We have analyst estimates for Milestone Scientific going out as far as 2021, 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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