ThermoGenesis Holdings, Inc. (NASDAQ:THMO) Just Reported Earnings, And Analysts Cut Their Target Price
It's shaping up to be a tough period for ThermoGenesis Holdings, Inc. (NASDAQ:THMO), which a week ago released some disappointing quarterly results that could have a notable impact on how the market views the stock. It was not a great statutory result, with revenues coming in 29% lower than the analyst predicted. Unsurprisingly, earnings also fell seriously short of forecasts, turning into a per-share loss of US$0.10. 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. So we collected the latest post-earnings statutory consensus estimate to see what could be in store for next year.
Check out our latest analysis for ThermoGenesis Holdings
Taking into account the latest results, the most recent consensus for ThermoGenesis Holdings from lone analyst is for revenues of US$18.7m in 2023 which, if met, would be a huge 83% increase on its sales over the past 12 months. Losses are predicted to fall substantially, shrinking 87% to US$0.03. Yet prior to the latest earnings, the analyst had been forecasting revenues of US$18.3m and losses of US$0.04 per share in 2023. Although the revenue estimate has not really changed ThermoGenesis Holdings'future looks a little different to the past, with a very favorable reduction to the loss per share forecasts in particular.
The consensus price target fell 88% to US$1.00despite the forecast for smaller losses next year. It looks like the ongoing lack of profitability is starting to weigh on valuations.
Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. For example, we noticed that ThermoGenesis Holdings' rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 62% growth to the end of 2023 on an annualised basis. That is well above its historical decline of 5.1% 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 7.4% per year. Not only are ThermoGenesis Holdings' 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 obvious conclusion is that the analyst made no changes to their forecasts for a loss next year. Fortunately, they also reconfirmed their revenue numbers, suggesting sales are tracking in line with expectations - and our data suggests that revenues are expected to 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.
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 ThermoGenesis Holdings going out as far as 2024, and you can see them free on our platform here.
Before you take the next step you should know about the 4 warning signs for ThermoGenesis Holdings that we have uncovered.
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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.
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