News Flash: 2 Analysts Think Elutia Inc. (NASDAQ:ELUT) Earnings Are Under Threat

One thing we could say about the analysts on Elutia Inc. (NASDAQ:ELUT) - they aren't optimistic, having just made a major negative revision to their near-term (statutory) forecasts for the organization. Both revenue and earnings per share (EPS) forecasts went under the knife, suggesting the analysts have soured majorly on the business.

Following the downgrade, the current consensus from Elutia's dual analysts is for revenues of US$26m in 2024 which - if met - would reflect a satisfactory 6.9% increase on its sales over the past 12 months. The loss per share is expected to ameliorate slightly, reducing to US$1.61. Yet before this consensus update, the analysts had been forecasting revenues of US$29m and losses of US$1.32 per share in 2024. So there's been quite a change-up of views after the recent consensus updates, with the analysts making a serious cut to their revenue forecasts while also expecting losses per share to increase.

View our latest analysis for Elutia

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Elutia's past performance and to peers in the same industry. For example, we noticed that Elutia's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 6.9% growth to the end of 2024 on an annualised basis. That is well above its historical decline of 0.1% a year over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 18% annually for the foreseeable future. Although Elutia's revenues are expected to improve, it seems that the analysts are still bearish on the business, forecasting it to grow slower than the broader industry.

The Bottom Line

The most important thing to take away is that analysts increased their loss per share estimates for this year. Regrettably, they also downgraded their revenue estimates, and the latest forecasts imply the business will grow sales slower than the wider market. After a cut like that, investors could be forgiven for thinking analysts are a lot more bearish on Elutia, and a few readers might choose to steer clear of the stock.

So things certainly aren't looking great, and you should also know that we've spotted some potential warning signs with Elutia, including a short cash runway. Learn more, and discover the 4 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.