Results: CollPlant Biotechnologies Ltd. Beat Earnings Expectations And Analysts Now Have New Forecasts
CollPlant Biotechnologies Ltd. (NASDAQ:CLGN) just released its quarterly report and things are looking bullish. Statutory earnings performance was extremely strong, with revenue of US$10m beating expectations by 98% and earnings per share (EPS) of US$0.49, an impressive 513%ahead of expectations. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on CollPlant Biotechnologies after the latest results.
See our latest analysis for CollPlant Biotechnologies
Taking into account the latest results, the current consensus from CollPlant Biotechnologies' twin analysts is for revenues of US$11.2m in 2023. This would reflect a credible 4.0% increase on its revenue over the past 12 months. Losses are expected to be contained, narrowing 14% from last year to US$0.51. Yet prior to the latest earnings, the analysts had been forecasting revenues of US$15.0m and losses of US$0.06 per share in 2023. There's been a definite change in sentiment in this update, with the analysts administering a notable cut to next year's revenue estimates, while at the same time increasing their loss per share forecasts.
The consensus price target fell 35% to US$16.88, with the analysts clearly concerned about the company following the weaker revenue and earnings outlook.
Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We can infer from the latest estimates that forecasts expect a continuation of CollPlant Biotechnologies'historical trends, as the 8.2% annualised revenue growth to the end of 2023 is roughly in line with the 9.5% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 15% per year. So although CollPlant Biotechnologies is expected to maintain its revenue growth rate, it's forecast to grow slower than the wider industry.
The Bottom Line
The most important thing to take away is that the analysts increased their loss per share estimates for next year. Unfortunately, they also downgraded their revenue estimates, and our data indicates underperformance compared to the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of CollPlant Biotechnologies' future valuation.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have analyst estimates for CollPlant Biotechnologies going out as far as 2025, and you can see them free on our platform here.
That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 2 warning signs with CollPlant Biotechnologies , and understanding these should be part of your investment process.
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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.
