SOPHiA GENETICS SA (NASDAQ:SOPH) Just Released Its Yearly Results And Analysts Are Updating Their Estimates
Last week, you might have seen that SOPHiA GENETICS SA (NASDAQ:SOPH) released its full-year result to the market. The early response was not positive, with shares down 2.3% to US$4.73 in the past week. SOPHiA GENETICS reported revenues of US$62m, in line with expectations, but it unfortunately also reported (statutory) losses of US$1.22 per share, which were slightly larger than expected. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
See our latest analysis for SOPHiA GENETICS
Taking into account the latest results, the consensus forecast from SOPHiA GENETICS' four analysts is for revenues of US$79.8m in 2024. This reflects a huge 28% improvement in revenue compared to the last 12 months. Losses are supposed to decline, shrinking 17% from last year to US$1.01. Before this latest report, the consensus had been expecting revenues of US$82.1m and US$0.91 per share in losses. While this year's revenue estimates dropped there was also a notable increase in loss per share expectations, suggesting the consensus has a bit of a mixed view on the stock.
There was no major change to the consensus price target of US$8.67, signalling that the business is performing roughly in line with expectations, despite lower earnings per share forecasts. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on SOPHiA GENETICS, with the most bullish analyst valuing it at US$10.00 and the most bearish at US$8.00 per share. This is a very narrow spread of estimates, implying either that SOPHiA GENETICS is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.
One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We can infer from the latest estimates that forecasts expect a continuation of SOPHiA GENETICS'historical trends, as the 28% annualised revenue growth to the end of 2024 is roughly in line with the 24% annual growth over the past three years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 11% annually. So although SOPHiA GENETICS is expected to maintain its revenue growth rate, it's definitely expected to grow faster 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. Regrettably, they also downgraded their revenue estimates, but the latest forecasts still imply the business will grow faster than the wider industry. The consensus price target held steady at US$8.67, with the latest estimates not enough to have an impact on their price targets.
Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have forecasts for SOPHiA GENETICS going out to 2026, and you can see them free on our platform here.
You should always think about risks though. Case in point, we've spotted 1 warning sign for SOPHiA GENETICS you should be aware of.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.
