ADMA Biologics, Inc. Just Beat EPS By 45%: Here's What Analysts Think Will Happen Next

A week ago, ADMA Biologics, Inc. (NASDAQ:ADMA) came out with a strong set of quarterly numbers that could potentially lead to a re-rate of the stock. The company beat forecasts, with revenue of US$82m, some 6.0% above estimates, and statutory earnings per share (EPS) coming in at US$0.08, 45% ahead of expectations. 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've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

Check out our latest analysis for ADMA Biologics

Taking into account the latest results, the current consensus from ADMA Biologics' four analysts is for revenues of US$357.5m in 2024. This would reflect a substantial 26% increase on its revenue over the past 12 months. Earnings are expected to improve, with ADMA Biologics forecast to report a statutory profit of US$0.35 per share. Before this earnings report, the analysts had been forecasting revenues of US$333.8m and earnings per share (EPS) of US$0.29 in 2024. There's been a pretty noticeable increase in sentiment, with the analysts upgrading revenues and making a nice increase in earnings per share in particular.

With these upgrades, we're not surprised to see that the analysts have lifted their price target 31% to US$10.50per share. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on ADMA Biologics, with the most bullish analyst valuing it at US$12.00 and the most bearish at US$10.00 per share. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

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 pretty clear that there is an expectation that ADMA Biologics' revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 36% growth on an annualised basis. This is compared to a historical growth rate of 50% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 18% annually. Even after the forecast slowdown in growth, it seems obvious that ADMA Biologics is also expected to grow faster than the wider industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards ADMA Biologics following these results. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business 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. At Simply Wall St, we have a full range of analyst estimates for ADMA Biologics going out to 2026, and you can see them free on our platform here..

However, before you get too enthused, we've discovered 1 warning sign for ADMA Biologics 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.