Earnings Update: Here's Why Analysts Just Lifted Their Inotiv, Inc. (NASDAQ:NOTV) Price Target To US$15.50
Shareholders will be ecstatic, with their stake up 38% over the past week following Inotiv, Inc.'s (NASDAQ:NOTV) latest quarterly results. Revenues of US$136m arrived in line with expectations, although statutory losses per share were US$0.60, an impressive 30% smaller than what broker models predicted. 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. 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 Inotiv
Taking into account the latest results, Inotiv's three analysts currently expect revenues in 2024 to be US$580.9m, approximately in line with the last 12 months. Losses are supposed to decline, shrinking 11% from last year to US$1.15. Before this latest report, the consensus had been expecting revenues of US$578.1m and US$1.30 per share in losses. While the revenue estimates were largely unchanged, sentiment seems to have improved, with the analysts upgrading their numbers and making a cut to losses per share in particular.
These new estimates led to the consensus price target rising 22% to US$15.50, with lower forecast losses suggesting things could be looking up for Inotiv. 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 Inotiv at US$25.00 per share, while the most bearish prices it at US$10.00. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.
Of course, another way to look at these forecasts is to place them into context against the industry itself. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 1.0% by the end of 2024. This indicates a significant reduction from annual growth of 58% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 6.1% per year. It's pretty clear that Inotiv's revenues are expected to perform substantially worse 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. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Inotiv's revenue is expected to perform worse than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Inotiv going out to 2026, and you can see them free on our platform here.
And what about risks? Every company has them, and we've spotted 2 warning signs for Inotiv (of which 1 can't be ignored!) 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.
