BioLife Solutions, Inc. (NASDAQ: BLFS) Investors will be thrilled, with the company posting solid numbers with its latest results. Both earnings and losses per share were better than expected, with earnings of US $ 17 million estimated at 4.2%. Statutory losses were lower than analysts’ expectations, reaching US $ 0.03 per share. Analysts typically update their forecasts with each earnings report, and we can judge from their estimates whether their view of the business has changed or whether there are new concerns to consider. So we’ve collected the latest post-profit statutory consensus estimates to see what might be in store for next year.
Based on the latest results, the current consensus of eight analysts at BioLife Solutions is for 2021 revenue of US $ 110.4 million, which would reflect a significant 109% increase in sales over the past 12 years. month. Losses are expected to drop significantly, falling 93% to US $ 0.05. Yet before the latest results, analysts were forecasting earnings of $ 105.6 million and losses of $ 0.039 per share in 2021. So it’s pretty clear that analysts have mixed opinions on BioLife Solutions even after this. update ; although they increased their income, it came at the cost of a dramatic increase in losses per share.
The consensus price target remained unchanged at US $ 56.43, appearing to suggest that the higher expected losses should not have a long-term impact on valuation. The consensus price target is only an average of individual analysts’ targets, so it might be helpful to see the breadth of the range of underlying estimates. Currently, the most bullish analyst values ââBioLife Solutions at US $ 65.00 per share, while the most bearish the price at US $ 50.00. Still, with such a narrow range of estimates, it suggests that analysts have a pretty good idea of ââwhat they think the company is worth.
Looking at the big picture now, one way to understand these forecasts is to compare them to estimates of past performance and industry growth. It is clear from the latest estimates that BioLife Solutions’ growth rate is expected to accelerate significantly, with an annualized revenue growth forecast of 168% by the end of 2021 significantly faster than its historical growth. by 41% per year over the past five years. Compare that with other companies in the same industry, which are expected to increase their revenues by 7.9% per year. It seems clear that while the growth outlook is brighter than in the recent past, analysts also expect BioLife Solutions to grow faster than the industry as a whole.
The bottom line
The most important thing to note is the forecast of increased losses next year, suggesting that all may not be for the best at BioLife Solutions. Fortunately, they have also improved their revenue estimates and predict that revenue will grow faster than the industry as a whole. The consensus price target has not really changed, suggesting that the intrinsic value of the company has not undergone any major changes with the latest estimates.
With that in mind, we wouldn’t be too quick to draw a conclusion on BioLife Solutions. Long-term earnings power is far more important than next year’s earnings. We have forecasts for BioLife Solutions through 2025, and you can see them for free on our platform here.
And what about the risks? Every business has them, and we’ve spotted 3 warning signs for BioLife Solutions (1 of which is a bit disturbing!) that you should know about.
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