SI-BONE, Inc. Just Reported Yearly Earnings: Have Analysts Changed Their Mind On The Stock?
There's been a notable change in appetite for SI-BONE, Inc. (NASDAQ:SIBN) shares in the week since its full-year report, with the stock down 19% to US$15.43. The results overall were pretty much dead in line with analyst forecasts; revenues were US$67m and statutory losses were US$1.55 per share. This is an important time for investors, as they can track a company's performance in its report, look at what top analysts are forecasting for next year, and see if there has been any change to expectations for the business. So we gathered the latest post-earnings forecasts to see what analysts' statutory forecasts suggest is in store for next year.
See our latest analysis for SI-BONE
Taking into account the latest results, the current consensus from SI-BONE's seven analysts is for revenues of US$81.2m in 2020, which would reflect a sizeable 21% increase on its sales over the past 12 months. Statutory losses are expected to increase slightly, to US$1.42 per share. Before this earnings announcement, analysts had been forecasting revenues of US$81.2m and losses of US$1.53 per share in 2020. Although the revenue estimates have not really changed, we can see there's been a modest lift to earnings per share expectations, suggesting that analysts have become more bullish after the latest result.
There's been no major changes to the consensus price target of US$26.71, suggesting that reduced loss estimates are not enough to have a long-term positive impact on the stock's valuation. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values SI-BONE at US$28.00 per share, while the most bearish prices it at US$24.00. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or that analysts have a clear view on its prospects.
It can be useful to take a broader overview by seeing how analyst forecasts compare, both to the SI-BONE's past performance and to peers in the same market. Analysts are definitely expecting SI-BONE's growth to accelerate, with the forecast 21% growth ranking favourably alongside historical growth of 10% per annum over the past five years. Compare this with other companies in the same market, which are forecast to grow their revenue 7.8% next year. Factoring in the forecast acceleration in revenue, it's pretty clear that SI-BONE is expected to grow much faster than its market.
The Bottom Line
The most important thing to take away is that analysts increased their loss per share estimates for next year. Happily, there were no major changes to revenue forecasts, with analysts still expecting the business to grow faster than the wider market. The consensus price target held steady at US$26.71, with the latest estimates not enough to have an impact on analysts' estimated valuations.
With that in mind, we wouldn't be too quick to come to a conclusion on SI-BONE. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for SI-BONE going out to 2023, and you can see them free on our platform here..
Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months on our platform, here.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned.
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