It's been a good week for NeoGenomics, Inc. (NASDAQ:NEO) shareholders, because the company has just released its latest quarterly results, and the shares gained 2.1% to US$37.53. Revenues of US$87m arrived in line with expectations, although statutory losses per share were US$0.06, an impressive 57% smaller than what broker models predicted. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
Taking into account the latest results, the current consensus from NeoGenomics' nine analysts is for revenues of US$453.2m in 2020, which would reflect a decent 12% increase on its sales over the past 12 months. Per-share losses are predicted to creep up to US$0.055. Before this earnings announcement, the analysts had been modelling revenues of US$426.8m and losses of US$0.18 per share in 2020. So it seems there's been a definite increase in optimism about NeoGenomics' future following the latest consensus numbers, with a the loss per share forecasts in particular.
It will come as no surprise to learn thatthe analysts have increased their price target for NeoGenomics 12% to US$40.19on the back of these upgrades. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic NeoGenomics analyst has a price target of US$45.00 per share, while the most pessimistic values it at US$35.00. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.
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. We would highlight that NeoGenomics' revenue growth is expected to slow, with forecast 12% increase next year well below the historical 24%p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 9.2% next year. Even after the forecast slowdown in growth, it seems obvious that NeoGenomics is also expected to grow faster than the wider industry.
The Bottom Line
The most obvious conclusion is that the analysts made no changes to their forecasts for a loss next year. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for NeoGenomics going out to 2022, and you can see them free on our platform here..
Plus, you should also learn about the 2 warning signs we've spotted with NeoGenomics .
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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