Upgrade: Analysts Just Made A Notable Increase To Their Applied DNA Sciences, Inc. (NASDAQ:APDN) Forecasts

Applied DNA Sciences, Inc. (NASDAQ:APDN) shareholders will have a reason to smile today, with the analysts making substantial upgrades to next year's forecasts. The consensus statutory numbers for both revenue and earnings per share (EPS) increased, with their view clearly much more bullish on the company's business prospects.

After the upgrade, the dual analysts covering Applied DNA Sciences are now predicting revenues of US$18m in 2023. If met, this would reflect a reasonable 2.7% improvement in sales compared to the last 12 months. Losses are expected to be contained, narrowing 17% from last year to US$0.79. However, before this estimates update, the consensus had been expecting revenues of US$20m and US$0.86 per share in losses. We can see there's definitely been a change in sentiment in this update, with the analysts administering a meaningful downgrade to next year's revenue estimates, while at the same time reducing their loss estimates.

Check out our latest analysis for Applied DNA Sciences

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. We would highlight that Applied DNA Sciences' revenue growth is expected to slow, with the forecast 2.1% annualised growth rate until the end of 2023 being well below the historical 26% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 7.2% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Applied DNA Sciences.

The Bottom Line

Regrettably, they also downgraded their revenue estimates, and the latest forecasts imply the business will grow sales slower than the wider market. More bullish expectations could be a signal for investors to take a closer look at Applied DNA Sciences.

These earnings upgrades look like a sterling endorsement, but before diving in - you should know that we've spotted 5 potential flags with Applied DNA Sciences, including major dilution from new stock issuance in the past year. You can learn more, and discover the 2 other flags we've identified, for free on our platform here.

Another way to search for interesting companies that could be reaching an inflection point is to track whether management are buying or selling, with our free list of growing companies that insiders are buying.

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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.