GeneDx Holdings Corp. (NASDAQ:WGS) Released Earnings Last Week And Analysts Lifted Their Price Target To US$9.13

As you might know, GeneDx Holdings Corp. (NASDAQ:WGS) just kicked off its latest annual results with some very strong numbers. Results overall were credible, with revenues arriving 2.1% better than analyst forecasts at US$203m. Higher revenues also resulted in lower statutory losses, which were US$7.23 per share, some 2.1% smaller than the analysts expected. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on GeneDx Holdings after the latest results.

Check out our latest analysis for GeneDx Holdings

Following the latest results, GeneDx Holdings' four analysts are now forecasting revenues of US$226.1m in 2024. This would be a meaningful 12% improvement in revenue compared to the last 12 months. Losses are predicted to fall substantially, shrinking 28% to US$4.89. Before this earnings announcement, the analysts had been modelling revenues of US$227.3m and losses of US$5.12 per share in 2024. It looks like there's been a modest increase in sentiment in the recent updates, with the analysts becoming a bit more optimistic in their predictions for losses per share, even though the revenue numbers were unchanged.

These new estimates led to the consensus price target rising 24% to US$9.13, with lower forecast losses suggesting things could be looking up for GeneDx Holdings. 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 GeneDx Holdings, with the most bullish analyst valuing it at US$14.00 and the most bearish at US$5.50 per share. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. It's clear from the latest estimates that GeneDx Holdings' rate of growth is expected to accelerate meaningfully, with the forecast 12% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 6.5% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 6.6% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that GeneDx Holdings is expected to grow much faster than its 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, 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 also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates - from multiple GeneDx Holdings analysts - going out to 2026, and you can see them free on our platform here.

Plus, you should also learn about the 4 warning signs we've spotted with GeneDx Holdings (including 2 which are a bit concerning) .

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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.