Just In: One Analyst Has Become A Lot More Bullish On Biocept, Inc.'s (NASDAQ:BIOC) Earnings

Celebrations may be in order for Biocept, Inc. (NASDAQ:BIOC) shareholders, with the covering analyst delivering a significant upgrade to their statutory estimates for the company. The analyst greatly increased their revenue estimates, suggesting a stark improvement in business fundamentals.

After the upgrade, the solitary analyst covering Biocept is now predicting revenues of US$58m in 2021. If met, this would reflect a reasonable 5.3% improvement in sales compared to the last 12 months. Losses are predicted to fall substantially, shrinking 51% to US$0.08. However, before this estimates update, the consensus had been expecting revenues of US$38m and US$0.82 per share in losses. So there's been quite a change-up of views after the recent consensus updates, with the analyst making a sizeable increase to their revenue forecasts while also reducing the estimated loss as the business grows towards breakeven.

See our latest analysis for Biocept

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We would highlight that Biocept's revenue growth is expected to slow, with the forecast 11% annualised growth rate until the end of 2021 being well below the historical 61% p.a. growth over the last five years. Compare this to the 632 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 10% per year. So it's pretty clear that, while Biocept's revenue growth is expected to slow, it's expected to grow roughly in line with the industry.

The Bottom Line

The highlight for us was that the consensus reduced its estimated losses this year, perhaps suggesting Biocept is moving incrementally towards profitability. There was also an upgrade to revenue estimates, although as we saw earlier, forecast growth is only expected to be about the same as the wider market. More bullish expectations could be a signal for investors to take a closer look at Biocept.

Still, the long-term prospects of the business are much more relevant than next year's earnings. At least one analyst has provided forecasts out to 2023, which can be seen 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.
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