Earnings Update: Precigen, Inc. (NASDAQ:PGEN) Just Reported Its First-Quarter Results And Analysts Are Updating Their Forecasts
Precigen, Inc. (NASDAQ:PGEN) defied analyst predictions to release its first-quarter results, which were ahead of market expectations. Sales crushed expectations at US$32m, beating expectations by 38%. Precigen reported a statutory loss of US$0.10 per share, which - although not amazing - was much smaller than the analysts 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
See our latest analysis for Precigen
Taking into account the latest results, the current consensus, from the five analysts covering Precigen, is for revenues of US$97.0m in 2022, which would reflect an uneasy 13% reduction in Precigen's sales over the past 12 months. Losses are expected to hold steady at around US$0.46. Yet prior to the latest earnings, the analysts had been forecasting revenues of US$97.0m and losses of US$0.46 per share in 2022.
As a result there was no major change to the consensus price target of US$12.20, implying that the business is trading roughly in line with expectations despite ongoing losses. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Precigen at US$17.00 per share, while the most bearish prices it at US$6.00. 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.
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. We would also point out that the forecast 17% annualised revenue decline to the end of 2022 is roughly in line with the historical trend, which saw revenues shrink 20% annually over the past five years By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue grow 12% per year. So while a broad number of companies are forecast to grow, unfortunately Precigen is expected to see its sales affected worse than other companies in the industry.
The Bottom Line
The most obvious conclusion is that the analysts made no changes to their forecasts for a loss next year. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting sales are tracking in line with expectations - although our data does suggest that Precigen's revenues are expected to perform worse than the wider industry. The consensus price target held steady at US$12.20, with the latest estimates not enough to have an impact on their price targets.
With that in mind, we wouldn't be too quick to come to a conclusion on Precigen. Long-term earnings power is much more important than next year's profits. We have forecasts for Precigen going out to 2024, and you can see them free on our platform here.
We don't want to rain on the parade too much, but we did also find 2 warning signs for Precigen that you need to be mindful of.
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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.
