Earnings Update: TELA Bio, Inc. (NASDAQ:TELA) Just Reported Its Annual Results And Analysts Are Updating Their Forecasts

It's been a good week for TELA Bio, Inc. (NASDAQ:TELA) shareholders, because the company has just released its latest full-year results, and the shares gained 7.5% to US$5.73. TELA Bio reported revenues of US$58m, in line with expectations, but it unfortunately also reported (statutory) losses of US$2.04 per share, which were slightly larger than expected. 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 gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

View our latest analysis for TELA Bio

After the latest results, the five analysts covering TELA Bio are now predicting revenues of US$74.9m in 2024. If met, this would reflect a substantial 28% improvement in revenue compared to the last 12 months. The loss per share is expected to ameliorate slightly, reducing to US$1.83. Yet prior to the latest earnings, the analysts had been forecasting revenues of US$75.2m and losses of US$1.61 per share in 2024. So it's pretty clear the analysts have mixed opinions on TELA Bio even after this update; although they reconfirmed their revenue numbers, it came at the cost of a notable increase in per-share losses.

As a result, there was no major change to the consensus price target of US$14.60, with the analysts implicitly confirming that the business looks to be performing in line with expectations, despite higher forecast losses. 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. There are some variant perceptions on TELA Bio, with the most bullish analyst valuing it at US$18.00 and the most bearish at US$12.00 per share. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the TELA Bio's past performance and to peers in the same industry. We can infer from the latest estimates that forecasts expect a continuation of TELA Bio'shistorical trends, as the 28% annualised revenue growth to the end of 2024 is roughly in line with the 35% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 7.9% annually. So it's pretty clear that TELA Bio 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. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is 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.

With that in mind, we wouldn't be too quick to come to a conclusion on TELA Bio. Long-term earnings power is much more important than next year's profits. We have forecasts for TELA Bio going out to 2026, and you can see them free on our platform here.

You should always think about risks though. Case in point, we've spotted 2 warning signs for TELA Bio 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.