US$3.00: That's What Analysts Think iSpecimen Inc. (NASDAQ:ISPC) Is Worth After Its Latest Results

Last week saw the newest quarterly earnings release from iSpecimen Inc. (NASDAQ:ISPC), an important milestone in the company's journey to build a stronger business. Revenues of US$2.9m arrived in line with expectations, although statutory losses per share were US$0.19, an impressive 32% smaller than what broker models predicted. The analyst 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analyst has changed their mind on iSpecimen after the latest results.

View our latest analysis for iSpecimen

After the latest results, the single analyst covering iSpecimen are now predicting revenues of US$11.1m in 2024. If met, this would reflect a credible 5.4% improvement in revenue compared to the last 12 months. Losses are expected to increase substantially, hitting US$0.88 per share. Yet prior to the latest earnings, the analyst had been forecasting revenues of US$11.5m and losses of US$1.15 per share in 2024. While the revenue estimates fell, sentiment seems to have improved, with the analyst making a very favorable reduction to losses per share in particular.

The consensus price target fell 40% to US$3.00, with the dip in revenue estimates clearly souring sentiment, despite the forecast reduction in losses.

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. One thing stands out from these estimates, which is that iSpecimen is forecast to grow faster in the future than it has in the past, with revenues expected to display 11% annualised growth until the end of 2024. If achieved, this would be a much better result than the 3.6% annual decline over the past three years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue grow 10% per year. So it looks like iSpecimen is expected to grow at about the same rate as the wider industry.

The Bottom Line

The most obvious conclusion is that the analyst made no changes to their forecasts for a loss next year. They also downgraded their revenue estimates, although as we saw earlier, forecast growth is only expected to be about the same as the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. Furthermore, the analyst also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

With that in mind, we wouldn't be too quick to come to a conclusion on iSpecimen. Long-term earnings power is much more important than next year's profits. At least one analyst has provided forecasts out to 2026, which can be seen for free on our platform here.

Plus, you should also learn about the 5 warning signs we've spotted with iSpecimen (including 3 which shouldn't be ignored) .

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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.