BioPorto A/S (CPH:BIOPOR) Analysts Are Cutting Their Estimates: Here's What You Need To Know

BioPorto A/S (CPH:BIOPOR) just released its latest third-quarter report and things are not looking great. It was not a great statutory result, with revenues coming in 37% lower than the analysts predicted. Unsurprisingly, earnings also fell seriously short of forecasts, turning into a per-share loss of kr.0.09. This is an important time for investors, as they can track a company's performance in its report, look at what experts are 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 estimates to see what could be in store for next year.

View our latest analysis for BioPorto

Taking into account the latest results, the most recent consensus for BioPorto from dual analysts is for revenues of kr.74.3m in 2021 which, if met, would be a sizeable 233% increase on its sales over the past 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 43% to kr.0.19. Before this latest report, the consensus had been expecting revenues of kr.84.2m and kr.0.13 per share in losses. There's been a definite change in sentiment in this update, with the analysts administering a notable cut to next year's revenue estimates, while at the same time increasing their loss per share forecasts.

The average price target was broadly unchanged at kr.6.29, perhaps implicitly signalling that the weaker earnings outlook is not expected to have a long-term impact on the valuation.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. It's clear from the latest estimates that BioPorto's rate of growth is expected to accelerate meaningfully, with the forecast 233% revenue growth noticeably faster than its historical growth of 5.5%p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 22% next year. Factoring in the forecast acceleration in revenue, it's pretty clear that BioPorto is expected to grow much faster than its 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 kr.6.29, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on BioPorto. Long-term earnings power is much more important than next year's profits. We have analyst estimates for BioPorto going out as far as 2024, and you can see them free on our platform here.

We don't want to rain on the parade too much, but we did also find 4 warning signs for BioPorto (2 are a bit concerning!) that you need to be mindful of.

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This article by Simply Wall St is general in nature. 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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