SOPHiA GENETICS SA (NASDAQ:SOPH) Full-Year Results Just Came Out: Here's What Analysts Are Forecasting For This Year

SOPHiA GENETICS SA (NASDAQ:SOPH) shareholders are probably feeling a little disappointed, since its shares fell 2.3% to US$4.73 in the week after its latest annual results. SOPHiA GENETICS reported revenues of US$62m, in line with expectations, but it unfortunately also reported (statutory) losses of US$1.22 per share, which were slightly larger than expected. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

View our latest analysis for SOPHiA GENETICS

Taking into account the latest results, the current consensus from SOPHiA GENETICS' four analysts is for revenues of US$79.8m in 2024. This would reflect a major 28% increase on its revenue over the past 12 months. Losses are expected to be contained, narrowing 17% from last year to US$1.01. Before this earnings announcement, the analysts had been modelling revenues of US$82.1m and losses of US$0.91 per share in 2024. So it's pretty clear the analysts have mixed opinions on SOPHiA GENETICS after this update; revenues were downgraded and per-share losses expected to increase.

There was no major change to the consensus price target of US$8.67, signalling that the business is performing roughly in line with expectations, despite lower earnings per share forecasts. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on SOPHiA GENETICS, with the most bullish analyst valuing it at US$10.00 and the most bearish at US$8.00 per share. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. The period to the end of 2024 brings more of the same, according to the analysts, with revenue forecast to display 28% growth on an annualised basis. That is in line with its 24% annual growth over the past three years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 11% 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 take away is that the analysts increased their loss per share estimates for next year. Regrettably, they also downgraded their revenue estimates, but the latest forecasts still imply the business will grow faster than the wider industry. The consensus price target held steady at US$8.67, with the latest estimates not enough to have an impact on their price targets.

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 SOPHiA GENETICS analysts - going out to 2026, and you can see them free on our platform here.

Don't forget that there may still be risks. For instance, we've identified 1 warning sign for SOPHiA GENETICS that 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.