OraSure Technologies, Inc. (NASDAQ:OSUR) Just Reported Earnings, And Analysts Cut Their Target Price

It's been a sad week for OraSure Technologies, Inc. (NASDAQ:OSUR), who've watched their investment drop 11% to US$4.86 in the week since the company reported its quarterly result. The results don't look great, especially considering that statutory losses grew 439% toUS$0.05 per share. Revenues of US$54m did beat expectations by 3.6%, but it looks like a bit of a cold comfort. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

Check out our latest analysis for OraSure Technologies

Taking into account the latest results, the five analysts covering OraSure Technologies provided consensus estimates of US$190.0m revenue in 2024, which would reflect a disturbing 38% decline over the past 12 months. Earnings are expected to tip over into lossmaking territory, with the analysts forecasting statutory losses of -US$0.12 per share in 2024. Yet prior to the latest earnings, the analysts had been forecasting revenues of US$190.3m and losses of US$0.12 per share in 2024.

As a result, it's unexpected to see that the consensus price target fell 5.3% to US$7.15, with the analysts seemingly becoming more concerned about ongoing losses, despite making no major changes to their forecasts. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values OraSure Technologies at US$9.00 per share, while the most bearish prices it at US$6.50. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await OraSure Technologies shareholders.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the OraSure Technologies' past performance and to peers in the same industry. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 47% by the end of 2024. This indicates a significant reduction from annual growth of 25% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 8.1% annually for the foreseeable future. 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 reconfirmed their loss per share estimates for next year. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that OraSure Technologies' revenue is expected to perform worse than the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of OraSure Technologies' future valuation.

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

That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 3 warning signs with OraSure Technologies (at least 1 which is concerning) , and understanding these should be part of your investment process.

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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.