MediWound Ltd. (NASDAQ:MDWD) Just Reported Full-Year Earnings: Have Analysts Changed Their Mind On The Stock?
As you might know, MediWound Ltd. (NASDAQ:MDWD) recently reported its full-year numbers. The results look positive overall; while revenues of US$19m were in line with analyst predictions, statutory losses were 6.0% smaller than expected, with MediWound losing US$0.75 per share. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on MediWound after the latest results.
See our latest analysis for MediWound
After the latest results, the four analysts covering MediWound are now predicting revenues of US$24.0m in 2024. If met, this would reflect a sizeable 29% improvement in revenue compared to the last 12 months. Per-share losses are expected to explode, reaching US$1.91 per share. Before this earnings announcement, the analysts had been modelling revenues of US$23.8m and losses of US$1.53 per share in 2024. So it's pretty clear the analysts have mixed opinions on MediWound even after this update; although they reconfirmed their revenue numbers, it came at the cost of a sizeable expansion in per-share losses.
The consensus price target held steady at US$28.50, seemingly implying that the higher forecast losses are not expected to have a long term impact on the company's valuation. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. Currently, the most bullish analyst values MediWound at US$36.00 per share, while the most bearish prices it at US$25.00. 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 MediWound shareholders.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the MediWound's past performance and to peers in the same industry. It's clear from the latest estimates that MediWound's rate of growth is expected to accelerate meaningfully, with the forecast 29% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 6.3% 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 9.1% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect MediWound to grow faster than the wider industry.
The Bottom Line
The most important thing to note is the forecast of increased losses next year, suggesting all may not be well at MediWound. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.
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 MediWound going out to 2026, and you can see them free on our platform here..
We also provide an overview of the MediWound Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, here.
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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.
