OraSure Technologies, Inc. (NASDAQ:OSUR) Analysts Are Pretty Bullish On The Stock After Recent Results

There's been a notable change in appetite for OraSure Technologies, Inc. (NASDAQ:OSUR) shares in the week since its quarterly report, with the stock down 14% to US$2.75. The results don't look great, especially considering that statutory losses grew 27% toUS$0.26 per share. Revenues of US$31m did beat expectations by 2.9%, but it looks like a bit of a cold comfort. 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.

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Following the recent earnings report, the consensus from three analysts covering OraSure Technologies is for revenues of US$122.8m in 2025. This implies a chunky 11% decline in revenue compared to the last 12 months. Per-share losses are expected to explode, reaching US$0.87 per share. Before this latest report, the consensus had been expecting revenues of US$127.8m and US$0.75 per share in losses. So it's pretty clear the analysts have mixed opinions on OraSure Technologies after this update; revenues were downgraded and per-share losses expected to increase.

View our latest analysis for OraSure Technologies

The analysts lifted their price target 20% to US$6.00, implicitly signalling that lower earnings per share are not expected to have a longer-term impact on the stock's value.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We would highlight that revenue is expected to reverse, with a forecast 21% annualised decline to the end of 2025. That is a notable change from historical growth of 5.3% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 8.3% per year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - OraSure Technologies is expected to lag the wider industry.

The Bottom Line

The most important thing to take away is that the analysts increased their loss per share estimates for next year. Unfortunately, they also downgraded their revenue estimates, and our data indicates underperformance compared to the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. 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.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple OraSure Technologies analysts - going out to 2027, and you can see them free on our platform here.

You can also see our analysis of OraSure Technologies' Board and CEO remuneration and experience, and whether company insiders have been buying stock.

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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.