Cryoport, Inc. (NASDAQ:CYRX) Analysts Just Cut Their EPS Forecasts Substantially

The latest analyst coverage could presage a bad day for Cryoport, Inc. (NASDAQ:CYRX), with the analysts making across-the-board cuts to their statutory estimates that might leave shareholders a little shell-shocked. Revenue and earnings per share (EPS) forecasts were both revised downwards, with the analysts seeing grey clouds on the horizon.

Following the downgrade, the current consensus from Cryoport's nine analysts is for revenues of US$288m in 2023 which - if met - would reflect a major 24% increase on its sales over the past 12 months. Losses are predicted to fall substantially, shrinking 94% to US$0.36. However, before this estimates update, the consensus had been expecting revenues of US$322m and US$0.18 per share in losses. Ergo, there's been a clear change in sentiment, with the analysts administering a notable cut to next year's revenue estimates, while at the same time increasing their loss per share forecasts.

Our analysis indicates that CYRX is potentially undervalued!

The consensus price target fell 17% to US$42.33, with the analysts clearly concerned about the company following the weaker revenue and earnings outlook. 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 Cryoport analyst has a price target of US$60.00 per share, while the most pessimistic values it at US$27.00. This is a fairly broad spread of estimates, suggesting that the analysts are forecasting a wide range of possible outcomes for the business.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's pretty clear that there is an expectation that Cryoport's revenue growth will slow down substantially, with revenues to the end of 2023 expected to display 18% growth on an annualised basis. This is compared to a historical growth rate of 59% 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 6.0% annually. Even after the forecast slowdown in growth, it seems obvious that Cryoport is also expected to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that analysts increased their loss per share estimates for next year. Unfortunately, analysts also downgraded their revenue estimates, although our data indicates revenues are expected to perform better than the wider market. Given the scope of the downgrades, it would not be a surprise to see the market become more wary of the business.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Cryoport going out to 2024, and you can see them free on our platform here.

Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are downgrading their estimates. So you may also wish to search this free list of stocks 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.