Analysts Are Updating Their SOPHiA GENETICS SA (NASDAQ:SOPH) Estimates After Its Second-Quarter Results

It's been a good week for SOPHiA GENETICS SA (NASDAQ:SOPH) shareholders, because the company has just released its latest quarterly results, and the shares gained 2.2% to US$3.20. Revenues of US$18m beat expectations by a respectable 4.8%, although statutory losses per share increased. SOPHiA GENETICS lost US$0.33, which was 38% more than what the analysts had included in their models. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

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Taking into account the latest results, the current consensus from SOPHiA GENETICS' five analysts is for revenues of US$74.5m in 2025. This would reflect a satisfactory 6.9% increase on its revenue over the past 12 months. Losses are expected to hold steady at around US$1.08. Yet prior to the latest earnings, the analysts had been forecasting revenues of US$74.2m and losses of US$0.96 per share in 2025. While this year's revenue estimates held steady, there was also a considerable increase in loss per share expectations, suggesting the consensus has a bit of a mixed view on the stock.

View our latest analysis for SOPHiA GENETICS

As a result, there was no major change to the consensus price target of US$7.00, with the analysts implicitly confirming that the business looks to be performing in line with expectations, despite higher forecast losses. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values SOPHiA GENETICS at US$9.00 per share, while the most bearish prices it at US$6.00. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the SOPHiA GENETICS' past performance and to peers in the same industry. We can infer from the latest estimates that forecasts expect a continuation of SOPHiA GENETICS'historical trends, as the 14% annualised revenue growth to the end of 2025 is roughly in line with the 15% annual growth over the past three years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 9.9% annually. So it's pretty clear that SOPHiA GENETICS is forecast to grow substantially faster than its industry.

The Bottom Line

The most important thing to note is the forecast of increased losses next year, suggesting all may not be well at SOPHiA GENETICS. Happily, there were no major changes to revenue forecasts, with the business still 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.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for SOPHiA GENETICS going out to 2027, and you can see them free on our platform here..

You should always think about risks though. Case in point, we've spotted 1 warning sign for SOPHiA GENETICS 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.