The Cerus Corporation (NASDAQ:CERS) First-Quarter Results Are Out And Analysts Have Published New Forecasts

Last week, you might have seen that Cerus Corporation (NASDAQ:CERS) released its first-quarter result to the market. The early response was not positive, with shares down 5.3% to US$1.62 in the past week. The statutory results were mixed overall, with revenues of US$38m in line with analyst forecasts, but losses of US$0.05 per share, some 4.2% larger than the analysts were predicting. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Cerus after the latest results.

Check out our latest analysis for Cerus

Taking into account the latest results, the most recent consensus for Cerus from five analysts is for revenues of US$177.9m in 2024. If met, it would imply a notable 8.6% increase on its revenue over the past 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 20% to US$0.14. Before this latest report, the consensus had been expecting revenues of US$178.7m and US$0.085 per share in losses. While this year's revenue estimates held steady, there was also a considerable increase to loss per share expectations, suggesting the consensus has a bit of a mixed view on the stock.

As a result, there was no major change to the consensus price target of US$4.40, with the analysts implicitly confirming that the business looks to be performing in line with expectations, despite higher forecast losses. 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 Cerus, with the most bullish analyst valuing it at US$6.00 and the most bearish at US$2.00 per share. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Cerus' past performance and to peers in the same industry. We would highlight that Cerus' revenue growth is expected to slow, with the forecast 12% annualised growth rate until the end of 2024 being well below the historical 20% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 8.1% annually. So it's pretty clear that, while Cerus' revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

The Bottom Line

The most important thing to take away is that the analysts increased their loss per share estimates for next year. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

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 Cerus going out to 2026, and you can see them free on our platform here..

You still need to take note of risks, for example - Cerus has 3 warning signs we think you should be aware of.

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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.