Biotage AB (publ) Just Recorded A 53% EPS Beat: Here's What Analysts Are Forecasting Next

Biotage AB (publ) (STO:BIOT) investors will be delighted, with the company turning in some strong numbers with its latest results. It was overall a positive result, with revenues beating expectations by 6.1% to hit kr1.9b. Biotage also reported a statutory profit of kr3.33, which was an impressive 53% above what the analysts had forecast. 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 thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

View our latest analysis for Biotage

Following the latest results, Biotage's three analysts are now forecasting revenues of kr2.16b in 2024. This would be a notable 16% improvement in revenue compared to the last 12 months. Per-share earnings are expected to rise 8.3% to kr3.30. Before this earnings report, the analysts had been forecasting revenues of kr2.00b and earnings per share (EPS) of kr2.64 in 2024. So it seems there's been a definite increase in optimism about Biotage's future following the latest results, with a massive increase in the earnings per share forecasts in particular.

It will come as no surprise to learn that the analysts have increased their price target for Biotage 13% to kr187on the back of these upgrades. 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. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

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. The analysts are definitely expecting Biotage's growth to accelerate, with the forecast 16% annualised growth to the end of 2024 ranking favourably alongside historical growth of 13% per annum 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 biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Biotage's earnings potential next year. Happily, they also upgraded their revenue estimates, and are forecasting them to grow faster than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Biotage 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.