Industry Analysts Just Made A Sizeable Upgrade To Their OraSure Technologies, Inc. (NASDAQ:OSUR) Revenue Forecasts
Shareholders in OraSure Technologies, Inc. (NASDAQ:OSUR) may be thrilled to learn that the analysts have just delivered a major upgrade to their near-term forecasts. The analysts have sharply increased their revenue numbers, with a view that OraSure Technologies will make substantially more sales than they'd previously expected. OraSure Technologies has also found favour with investors, with the stock up a magnificent 44% to US$6.49 over the past week. It will be interesting to see if today's upgrade is enough to propel the stock even higher.
Following the latest upgrade, the six analysts covering OraSure Technologies provided consensus estimates of US$364m revenue in 2023, which would reflect a substantial 24% decline on its sales over the past 12 months. Statutory earnings per share are anticipated to dive 52% to US$0.28 in the same period. Previously, the analysts had been modelling revenues of US$320m and earnings per share (EPS) of US$0.12 in 2023. 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 OraSure Technologies
Although the analysts have upgraded their earnings estimates, there was no change to the consensus price target of US$5.95, suggesting that the forecast performance does not have a long term impact on the company's valuation.
Of course, another way to look at these forecasts is to place them into context against the industry itself. These estimates imply that sales are expected to slow, with a forecast annualised revenue decline of 43% by the end of 2023. This indicates a significant reduction from annual growth of 23% 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 7.8% per year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - OraSure Technologies is expected to lag the wider industry.
The Bottom Line
The most important thing to take away from this upgrade is that analysts upgraded their earnings per share estimates for this year, expecting improving business conditions. Fortunately, they also upgraded their revenue estimates, and are forecasting revenues to grow slower than the wider market. Seeing the dramatic upgrade to this year's forecasts, it might be time to take another look at OraSure Technologies.
Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. At Simply Wall St, we have a full range of analyst estimates for OraSure Technologies going out to 2025, and you can see them free on our platform here..
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.
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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.
