Here's What Analysts Are Forecasting For NanoString Technologies, Inc. (NASDAQ:NSTG) After Its Third-Quarter Results
NanoString Technologies, Inc. (NASDAQ:NSTG) just released its latest quarterly results and things are looking bullish. The results overall were credible, with revenues of US$32m beating expectations by 11%. Statutory losses were US$0.56 per share, 15% below what the analysts had forecast. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on NanoString Technologies after the latest results.
See our latest analysis for NanoString Technologies
Taking into account the latest results, the most recent consensus for NanoString Technologies from six analysts is for revenues of US$148.9m in 2021 which, if met, would be a substantial 26% increase on its sales over the past 12 months. Per-share losses are expected to explode, reaching US$2.14 per share. Before this earnings announcement, the analysts had been modelling revenues of US$148.4m and losses of US$2.24 per share in 2021. It looks like there's been a modest increase in sentiment in the recent updates, with the analysts becoming a bit more optimistic in their predictions for losses per share, even though the revenue numbers were unchanged.
There's been no major changes to the consensus price target of US$45.67, suggesting that reduced loss estimates are not enough to have a long-term positive impact on the stock's 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. The most optimistic NanoString Technologies analyst has a price target of US$52.00 per share, while the most pessimistic values it at US$43.00. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting NanoString Technologies is an easy business to forecast or the the analysts are all using similar assumptions.
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. The analysts are definitely expecting NanoString Technologies' growth to accelerate, with the forecast 26% growth ranking favourably alongside historical growth of 12% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 8.7% next year. Factoring in the forecast acceleration in revenue, it's pretty clear that NanoString Technologies is expected to grow much faster than its industry.
The Bottom Line
The most obvious conclusion is that the analysts made no changes to their forecasts for a loss next year. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at US$45.67, with the latest estimates not enough to have an impact on their price targets.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for NanoString Technologies going out to 2022, and you can see them free on our platform here..
You still need to take note of risks, for example - NanoString Technologies has 3 warning signs we think you should be aware of.
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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