CryoLife, Inc. (NYSE:CRY) Second-Quarter Results: Here's What Analysts Are Forecasting For This Year

Investors in CryoLife, Inc. (NYSE:CRY) had a good week, as its shares rose 4.8% to close at US$27.00 following the release of its quarterly results. Sales of US$76m came in 7.3% ahead of expectations, although statutory earnings didn't fare nearly so well, recording a loss of US$0.06, a 20% miss. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on CryoLife after the latest results.

Check out our latest analysis for CryoLife

Following the latest results, CryoLife's four analysts are now forecasting revenues of US$298.5m in 2021. This would be an okay 6.5% improvement in sales compared to the last 12 months. Losses are expected to be contained, narrowing 18% from last year to US$0.24. Before this latest report, the consensus had been expecting revenues of US$292.0m and US$0.18 per share in losses. While this year's revenue estimates increased, there was also a considerable increase to loss per share expectations, suggesting the consensus has a bit of a mixed view on the stock.

There was no major change to the consensus price target of US$34.19, with growing revenues seemingly enough to offset the concern of growing 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. The most optimistic CryoLife analyst has a price target of US$39.00 per share, while the most pessimistic values it at US$30.75. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting CryoLife is an easy business to forecast or the the analysts are all using similar assumptions.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. It's clear from the latest estimates that CryoLife's rate of growth is expected to accelerate meaningfully, with the forecast 13% annualised revenue growth to the end of 2021 noticeably faster than its historical growth of 10% 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 8.0% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that CryoLife is expected to grow much 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. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business 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.

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 CryoLife analysts - going out to 2023, and you can see them free on our platform here.

It is also worth noting that we have found 3 warning signs for CryoLife (1 is significant!) that you need to take into consideration.

If you’re looking to trade CryoLife, open an account with the lowest-cost* platform trusted by professionals, Interactive Brokers. Their clients from over 200 countries and territories trade stocks, options, futures, forex, bonds and funds worldwide from a single integrated account. Promoted

This article by Simply Wall St is general in nature. 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.
^*Interactive Brokers Rated Lowest Cost Broker by StockBrokers.com Annual Online Review 2020

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.