Maravai LifeSciences Holdings, Inc. Just Beat Earnings Expectations: Here's What Analysts Think Will Happen Next
Maravai LifeSciences Holdings, Inc. (NASDAQ:MRVI) defied analyst predictions to release its yearly results, which were ahead of market expectations. The company beat both earnings and revenue forecasts, with revenue of US$799m, some 2.6% above estimates, and statutory earnings per share (EPS) coming in at US$1.56, 39% ahead of expectations. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
See our latest analysis for Maravai LifeSciences Holdings
Following the latest results, Maravai LifeSciences Holdings' nine analysts are now forecasting revenues of US$934.6m in 2022. This would be a solid 17% improvement in sales compared to the last 12 months. Per-share earnings are expected to jump 112% to US$1.50. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$863.6m and earnings per share (EPS) of US$1.36 in 2022. So there seems to have been a moderate uplift in sentiment following the latest results, given the upgrades to both revenue and earnings per share forecasts for next year.
As a result, it might be a surprise to see thatthe analysts have cut their price target 12% to US$47.88, which could suggest the forecast improvement in performance is not expected to last. 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. There are some variant perceptions on Maravai LifeSciences Holdings, with the most bullish analyst valuing it at US$62.00 and the most bearish at US$42.00 per share. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Maravai LifeSciences Holdings shareholders.
One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. It's pretty clear that there is an expectation that Maravai LifeSciences Holdings' revenue growth will slow down substantially, with revenues to the end of 2022 expected to display 17% growth on an annualised basis. This is compared to a historical growth rate of 52% over the past three years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 8.0% annually. Even after the forecast slowdown in growth, it seems obvious that Maravai LifeSciences Holdings is also expected to grow faster than the wider industry.
The Bottom Line
The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Maravai LifeSciences Holdings following these results. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.
Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for Maravai LifeSciences Holdings going out to 2024, and you can see them free on our platform here..
You should always think about risks though. Case in point, we've spotted 1 warning sign for Maravai LifeSciences Holdings you should be aware 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.
