US$76.67 - That's What Analysts Think GeneDx Holdings Corp. (NASDAQ:WGS) Is Worth After These Results

GeneDx Holdings Corp. (NASDAQ:WGS) just released its latest third-quarter results and things are looking bullish. GeneDx Holdings outperformed estimates, with revenues of US$77m beating estimates by 18%. Statutory losses were US$0.31, 30% smaller thanthe analysts expected. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

View our latest analysis for GeneDx Holdings

Following the latest results, GeneDx Holdings' six analysts are now forecasting revenues of US$328.1m in 2025. This would be a sizeable 23% improvement in revenue compared to the last 12 months. Losses are predicted to fall substantially, shrinking 79% to US$0.64. Before this earnings announcement, the analysts had been modelling revenues of US$301.0m and losses of US$0.59 per share in 2025. So it's pretty clear consensus is mixed on GeneDx Holdings after the new consensus numbers; while the analysts lifted revenue numbers, they also administered a pronounced increase to per-share loss expectations.

The average price target rose 58% to US$76.67, even thoughthe analysts have been updating their forecasts to show higher revenues and higher forecast losses. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on GeneDx Holdings, with the most bullish analyst valuing it at US$95.00 and the most bearish at US$70.00 per share. 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.

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. The analysts are definitely expecting GeneDx Holdings' growth to accelerate, with the forecast 18% annualised growth to the end of 2025 ranking favourably alongside historical growth of 5.1% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 6.7% annually. 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 note is the forecast of increased losses next year, suggesting all may not be well at GeneDx Holdings. Happily, they also upgraded their revenue estimates, and are forecasting them to grow faster than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

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. At Simply Wall St, we have a full range of analyst estimates for GeneDx Holdings 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 2 warning signs for GeneDx Holdings (1 doesn't sit too well with us) 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.