CollPlant Biotechnologies Ltd. (NASDAQ:CLGN) Second-Quarter Results: Here's What Analysts Are Forecasting For This Year

It's been a sad week for CollPlant Biotechnologies Ltd. (NASDAQ:CLGN), who've watched their investment drop 11% to US$16.72 in the week since the company reported its second-quarter result. Revenues came in 244% better than analyst models expected, at US$686k, although statutory losses were 11% larger than expected, at US$0.30 per share. Following the result, the analyst has updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. With this in mind, we've gathered the latest statutory forecasts to see what the analyst is expecting for next year.

See our latest analysis for CollPlant Biotechnologies

Taking into account the latest results, the single analyst covering CollPlant Biotechnologies provided consensus estimates of US$15.8m revenue in 2021, which would reflect a concerning 21% decline on its sales over the past 12 months. Statutory earnings per share are expected to crater 67% to US$0.20 in the same period. Before this earnings report, the analyst had been forecasting revenues of US$15.3m and earnings per share (EPS) of US$0.23 in 2021. While next year's revenue estimates increased, there was also a real cut to EPS expectations, suggesting the consensus has a bit of a mixed view of these results.

There's been no major changes to the price target of US$26.13, suggesting that the impact of higher forecast sales and lower earnings won't result in a meaningful change to the business' valuation.

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. These estimates imply that sales are expected to slow, with a forecast annualised revenue decline of 37% by the end of 2021. This indicates a significant reduction from annual growth of 69% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 10% annually for the foreseeable future. It's pretty clear that CollPlant Biotechnologies' revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The most important thing to take away is that the analyst downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Fortunately, they also upgraded their revenue estimates, although our data indicates sales are expected to perform worse 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.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At least one analyst has provided forecasts out to 2023, which can be seen for free on our platform here.

However, before you get too enthused, we've discovered 3 warning signs for CollPlant Biotechnologies (2 can't be ignored!) 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.
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