Biotage AB (publ) Just Beat EPS By 53%: Here's What Analysts Think Will Happen Next

Biotage AB (publ) (STO:BIOT) just released its yearly report and things are looking bullish. The company beat forecasts, with revenue of kr1.9b, some 6.1% above estimates, and statutory earnings per share (EPS) coming in at kr3.33, 53% ahead of expectations. 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 gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

See our latest analysis for Biotage

Taking into account the latest results, the consensus forecast from Biotage's three analysts is for revenues of kr2.14b in 2024. This reflects a solid 15% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to accumulate 6.5% to kr3.28. Yet prior to the latest earnings, the analysts had been anticipated revenues of kr2.14b and earnings per share (EPS) of kr3.30 in 2024. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

With no major changes to earnings forecasts, the consensus price target fell 7.1% to kr173, suggesting that the analysts might have previously been hoping for an earnings upgrade. 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. There are some variant perceptions on Biotage, with the most bullish analyst valuing it at kr200 and the most bearish at kr160 per share. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Biotage is an easy business to forecast or the the analysts are all using similar assumptions.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Biotage's past performance and to peers in the same industry. It's clear from the latest estimates that Biotage's rate of growth is expected to accelerate meaningfully, with the forecast 15% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 13% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 10% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Biotage to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Biotage analysts - going out to 2026, and you can see them free on our platform here.

Even so, be aware that Biotage is showing 1 warning sign in our investment analysis , you should know about...

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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.