RiceBran Technologies (NASDAQ:RIBT) missed earnings with its latest first-quarter results, disappointing overly-optimistic forecasts. Revenues missed expectations somewhat, coming in at US$8.3m and leading to a corresponding blowout in statutory losses. The loss per share was US$0.08, some 14% larger than the analyst forecast. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analyst is expecting for next year.
After the latest results, the one analyst covering RiceBran Technologies are now predicting revenues of US$37.3m in 2020. If met, this would reflect a sizeable 45% improvement in sales compared to the last 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 57% to US$0.17. Yet prior to the latest earnings, the analyst had been forecasting revenues of US$37.6m and losses of US$0.15 per share in 2020. While this year's revenue estimates held steady, there was also a loss per share expectations, suggesting the consensus has a bit of a mixed view on the stock.
The consensus price target fell 50% to US$2.50 per share, with the analyst clearly concerned by ballooning losses.
Of course, another way to look at these forecasts is to place them into context against the industry itself. For example, we noticed that RiceBran Technologies' rate of growth is expected to accelerate meaningfully, with revenues forecast to grow 45%, well above its historical decline of 18% 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 2.3% per year. So it looks like RiceBran Technologies is expected to grow faster than its competitors, at least for a while.
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. Happily, there were no major changes to revenue forecasts, with the business still 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.
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.
Even so, be aware that RiceBran Technologies is showing 5 warning signs in our investment analysis , and 1 of those doesn't sit too well with us...
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