BioSyent Inc. (CVE:RX) Reported Earnings Last Week And Analysts Are Already Upgrading Their Estimates

It's been a good week for BioSyent Inc. (CVE:RX) shareholders, because the company has just released its latest yearly results, and the shares gained 2.5% to CA$7.33. It looks like the results were a bit of a negative overall. While revenues of CA$22m were in line with analyst predictions, statutory earnings were less than expected, missing estimates by 3.3% to hit CA$0.29 per share. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

View our latest analysis for BioSyent

Taking into account the latest results, the most recent consensus for BioSyent from dual analysts is for revenues of CA$27.7m in 2021 which, if met, would be a sizeable 24% increase on its sales over the past 12 months. Per-share earnings are expected to jump 37% to CA$0.40. In the lead-up to this report, the analysts had been modelling revenues of CA$25.4m and earnings per share (EPS) of CA$0.33 in 2021. So it seems there's been a definite increase in optimism about BioSyent's future following the latest results, with a great increase in the earnings per share forecasts in particular.

Althoughthe analysts have upgraded their earnings estimates, there was no change to the consensus price target of CA$7.50, suggesting that the forecast performance does not have a long term impact on the company's valuation.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's clear from the latest estimates that BioSyent's rate of growth is expected to accelerate meaningfully, with the forecast 24% annualised revenue growth to the end of 2021 noticeably faster than its historical growth of 7.0% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 32% per year. It seems obvious that, while the future growth outlook is brighter than the recent past, BioSyent is expected to grow slower than the wider industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards BioSyent following these results. They also upgraded their revenue estimates for next year, even though sales are expected to grow slower than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

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 BioSyent going out as far as 2023, and you can see them free on our platform here.

It is also worth noting that we have found 1 warning sign for BioSyent that you need to take into consideration.

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