Forecast: Analysts Think Fulgent Genetics, Inc.'s (NASDAQ:FLGT) Business Prospects Have Improved Drastically
Fulgent Genetics, Inc. (NASDAQ:FLGT) shareholders will have a reason to smile today, with the analysts making substantial upgrades to next year's forecasts. The consensus statutory numbers for both revenue and earnings per share (EPS) increased, with their view clearly much more bullish on the company's business prospects.
Following the upgrade, the latest consensus from Fulgent Genetics' four analysts is for revenues of US$369m in 2021, which would reflect a sizeable 173% improvement in sales compared to the last 12 months. Per-share earnings are expected to surge 175% to US$6.16. Previously, the analysts had been modelling revenues of US$316m and earnings per share (EPS) of US$5.21 in 2021. So we can see there's been a pretty clear increase in analyst sentiment in recent times, with both revenues and earnings per share receiving a decent lift in the latest estimates.
View our latest analysis for Fulgent Genetics
Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. It's clear from the latest estimates that Fulgent Genetics' rate of growth is expected to accelerate meaningfully, with the forecast 173% revenue growth noticeably faster than its historical growth of 40% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 6.9% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Fulgent Genetics is expected to grow much faster than its industry.
The Bottom Line
The most important thing to take away from this upgrade is that analysts upgraded their earnings per share estimates for next year, expecting improving business conditions. They also upgraded their revenue estimates for next year, and sales are expected to grow faster than the wider market. With a serious upgrade to expectations, it might be time to take another look at Fulgent Genetics.
These earnings upgrades look like a sterling endorsement, but before diving in - you should know that we've spotted 5 potential risks with Fulgent Genetics, including dilutive stock issuance over the past year. For more information, you can click through to our platform to learn more about this and the 3 other risks we've identified .
Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are upgrading their estimates. So you may also wish to search this free list of stocks that insiders are buying.
This article by Simply Wall St is general in nature. 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.
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