RiceBran Technologies (NASDAQ:RIBT) Consensus Forecasts Have Become A Little Darker Since Its Latest Report
RiceBran Technologies (NASDAQ:RIBT) shareholders are probably feeling a little disappointed, since its shares fell 8.7% to US$0.47 in the week after its latest third-quarter results. Revenues of US$5.2m fell short of estimates by 12%, but statutory losses were in line with expectations, at US$0.07 per share. This is an important time for investors, as they can track a company's performance in its report, look at what expert is forecasting for next year, and see if there has been any change to expectations for the business. We thought readers would find it interesting to see the analyst latest (statutory) post-earnings forecasts for next year.
See our latest analysis for RiceBran Technologies
Taking into account the latest results, the most recent consensus for RiceBran Technologies from sole analyst is for revenues of US$31.7m in 2021 which, if met, would be a sizeable 26% increase on its sales over the past 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 77% to US$0.08. Yet prior to the latest earnings, the analyst had been forecasting revenues of US$33.7m and losses of US$0.03 per share in 2021. While next year's revenue estimates dropped there was also a loss per share expectations, suggesting the consensus has a bit of a mixed view on the stock.
The average price target fell 20% to US$1.00, implicitly signalling that lower earnings per share are a leading indicator for RiceBran Technologies' valuation.
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. For example, we noticed that RiceBran Technologies' rate of growth is expected to accelerate meaningfully, with revenues forecast to grow 26%, well above its historical decline of 7.0% a year over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue grow 3.0% per year. Not only are RiceBran Technologies' revenues expected to improve, it seems that the analyst is also expecting it 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 RiceBran Technologies. Regrettably, they also downgraded their revenue estimates, but the latest forecasts still imply the business will grow faster than the wider industry. Furthermore, the analyst also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have analyst estimates for RiceBran Technologies going out as far as 2021, and you can see them free on our platform here.
And what about risks? Every company has them, and we've spotted 5 warning signs for RiceBran Technologies (of which 1 is significant!) you should know about.
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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