Industry Analysts Just Made A Dazzling Upgrade To Their Oryzon Genomics S.A. (BME:ORY) Revenue Forecasts

Oryzon Genomics S.A. (BME:ORY) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's forecasts. The consensus estimated revenue numbers rose, with their view now clearly much more bullish on the company's business prospects. Investor sentiment seems to be improving too, with the share price up 6.6% to €2.51 over the past 7 days. Whether the upgrade is enough to drive the stock price higher is yet to be seen, however.

Following the latest upgrade, the four analysts covering Oryzon Genomics provided consensus estimates of US$3.3m revenue in 2022, which would reflect a sizeable 70% decline on its sales over the past 12 months. Per-share losses are expected to explode, reaching US$0.15 per share. Yet prior to the latest estimates, the analysts had been forecasting revenues of US$2.5m and losses of US$0.15 per share in 2022. So there's definitely been a change in sentiment in this update, with the analysts upgrading this year's revenue estimates, while at the same time holding losses per share steady.

View our latest analysis for Oryzon Genomics

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. These estimates imply that sales are expected to slow, with a forecast annualised revenue decline of 91% by the end of 2022. This indicates a significant reduction from annual growth of 15% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 27% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Oryzon Genomics is expected to lag the wider industry.

The Bottom Line

The most important thing here is that analysts reduced their loss per share estimates for this year, reflecting increased optimism around Oryzon Genomics' prospects. Pleasantly, analysts also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow slower than the wider market. Seeing the dramatic upgrade to this year's forecasts, it might be time to take another look at Oryzon Genomics.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Oryzon Genomics going out to 2024, and you can see them free on our platform here..

Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are upgrading their estimates. So you may also wish to search this free list of stocks that insiders are buying.

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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.