U.S. markets open in 8 hours 27 minutes
  • S&P Futures

    3,848.50
    +29.25 (+0.77%)
     
  • Dow Futures

    31,972.00
    +196.00 (+0.62%)
     
  • Nasdaq Futures

    12,443.75
    +146.50 (+1.19%)
     
  • Russell 2000 Futures

    2,217.60
    +16.80 (+0.76%)
     
  • Crude Oil

    65.27
    +0.22 (+0.34%)
     
  • Gold

    1,686.60
    +8.60 (+0.51%)
     
  • Silver

    25.41
    +0.14 (+0.56%)
     
  • EUR/USD

    1.1860
    +0.0007 (+0.06%)
     
  • 10-Yr Bond

    1.5960
    0.0000 (0.00%)
     
  • Vix

    25.47
    +0.81 (+3.28%)
     
  • GBP/USD

    1.3839
    +0.0017 (+0.12%)
     
  • USD/JPY

    109.2170
    +0.3160 (+0.29%)
     
  • BTC-USD

    54,228.71
    +3,739.32 (+7.41%)
     
  • CMC Crypto 200

    1,092.83
    +68.62 (+6.70%)
     
  • FTSE 100

    6,719.13
    +88.61 (+1.34%)
     
  • Nikkei 225

    29,027.26
    +284.01 (+0.99%)
     

Quanterix Corporation Beat Analyst Profit Forecasts, And Analysts Have New Estimates

  • Oops!
    Something went wrong.
    Please try again later.
Simply Wall St
·3 min read
  • Oops!
    Something went wrong.
    Please try again later.

Shareholders will be ecstatic, with their stake up 34% over the past week following Quanterix Corporation's (NASDAQ:QTRX) latest quarterly results. In addition to smashing expectations with revenues of US$31m, Quanterix delivered a surprise statutory profit of US$0.07 per share, a notable improvement compared to analyst expectations of a loss. 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 thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

View our latest analysis for Quanterix

earnings-and-revenue-growth
earnings-and-revenue-growth

Taking into account the latest results, the most recent consensus for Quanterix from five analysts is for revenues of US$91.3m in 2021 which, if met, would be a decent 20% increase on its sales over the past 12 months. Losses are expected to increase substantially, hitting US$1.30 per share. Before this latest report, the consensus had been expecting revenues of US$88.0m and US$1.36 per share in losses. So there seems to have been a moderate uplift in analyst sentiment with the latest consensus release, given the upgrades to both revenue and loss per share forecasts for next year.

It will come as no surprise to learn thatthe analysts have increased their price target for Quanterix 5.4% to US$44.25on the back of these upgrades. 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. Currently, the most bullish analyst values Quanterix at US$50.00 per share, while the most bearish prices it at US$40.00. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. It's pretty clear that there is an expectation that Quanterix's revenue growth will slow down substantially, with revenues next year expected to grow 20%, compared to a historical growth rate of 36% over the past five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 9.0% next year. So it's pretty clear that, while Quanterix's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

The Bottom Line

The most important thing to take away is that the analysts reconfirmed their loss per share estimates for next year. Happily, they also upgraded their revenue estimates, and are forecasting revenues 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 in mind, we wouldn't be too quick to come to a conclusion on Quanterix. Long-term earnings power is much more important than next year's profits. We have forecasts for Quanterix going out to 2024, and you can see them free on our platform here.

However, before you get too enthused, we've discovered 4 warning signs for Quanterix that you should be aware of.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com.