MaxCyte, Inc. (LON:MXCT) Analysts Just Slashed This Year's Revenue Estimates By 11%

Market forces rained on the parade of MaxCyte, Inc. (LON:MXCT) shareholders today, when the analysts downgraded their forecasts for this year. There was a fairly draconian cut to their revenue estimates, perhaps an implicit admission that previous forecasts were much too optimistic.

Following the downgrade, the latest consensus from MaxCyte's seven analysts is for revenues of US$48m in 2023, which would reflect a meaningful 17% improvement in sales compared to the last 12 months. Losses are expected to increase substantially, hitting US$0.33 per share. Yet prior to the latest estimates, the analysts had been forecasting revenues of US$54m and losses of US$0.32 per share in 2023. Ergo, there's been a clear change in sentiment, with the analysts administering a notable cut to this year's revenue estimates, while at the same time increasing their loss per share forecasts.

Check out our latest analysis for MaxCyte

The consensus price target fell 12% to US$10.67, with the analysts clearly concerned about the company following the weaker revenue and earnings outlook. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values MaxCyte at US$9.25 per share, while the most bearish prices it at US$7.90. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting MaxCyte is an easy business to forecast or the underlying assumptions are obvious.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the MaxCyte's past performance and to peers in the same industry. We can infer from the latest estimates that forecasts expect a continuation of MaxCyte'shistorical trends, as the 23% annualised revenue growth to the end of 2023 is roughly in line with the 23% annual revenue growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 16% annually. So although MaxCyte is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that analysts increased their loss per share estimates for this year. Unfortunately, analysts also downgraded their revenue estimates, although our data indicates revenues are expected to perform better than the wider market. Furthermore, there was a cut to the price target, suggesting that the latest news has led to more pessimism about the intrinsic value of the business. Given the stark change in sentiment, we'd understand if investors became more cautious on MaxCyte after today.

Still, the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple MaxCyte analysts - going out to 2025, 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 downgrading 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.