Maravai LifeSciences Holdings, Inc. (NASDAQ:MRVI) Just Released Its Annual Results And Analysts Are Updating Their Estimates
The investors in Maravai LifeSciences Holdings, Inc.'s (NASDAQ:MRVI) will be rubbing their hands together with glee today, after the share price leapt 57% to US$8.36 in the week following its yearly results. The results don't look great, especially considering that statutory losses grew 873% toUS$0.90 per share. Revenues of US$289m did beat expectations by 3.5%, but it looks like a bit of a cold comfort. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
View our latest analysis for Maravai LifeSciences Holdings
Taking into account the latest results, the current consensus, from the twelve analysts covering Maravai LifeSciences Holdings, is for revenues of US$272.8m in 2024. This implies a small 5.6% reduction in Maravai LifeSciences Holdings' revenue over the past 12 months. Earnings are expected to improve, with Maravai LifeSciences Holdings forecast to report a statutory profit of US$0.037 per share. Before this earnings report, the analysts had been forecasting revenues of US$261.0m and earnings per share (EPS) of US$0.022 in 2024. There's been a pretty noticeable increase in sentiment, with the analysts upgrading revenues and making a considerable lift to earnings per share in particular.
Althoughthe analysts have upgraded their earnings estimates, there was no change to the consensus price target of US$9.26, suggesting that the forecast performance does not have a long term impact on the company's valuation. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. The most optimistic Maravai LifeSciences Holdings analyst has a price target of US$14.00 per share, while the most pessimistic values it at US$6.50. 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.
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. We would highlight that revenue is expected to reverse, with a forecast 5.6% annualised decline to the end of 2024. That is a notable change from historical growth of 18% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 6.1% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Maravai LifeSciences Holdings is expected to lag the wider industry.
The Bottom Line
The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Maravai LifeSciences Holdings' earnings potential next year. Fortunately, they also upgraded their revenue estimates, although our data indicates it is expected to perform worse than the wider industry. The consensus price target held steady at US$9.26, with the latest estimates not enough to have an impact on their price targets.
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. We have forecasts for Maravai LifeSciences Holdings going out to 2026, and you can see them free on our platform here.
Don't forget that there may still be risks. For instance, we've identified 1 warning sign for Maravai LifeSciences Holdings that you should be aware of.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.
