US$6.50: That's What Analysts Think Elutia Inc. (NASDAQ:ELUT) Is Worth After Its Latest Results

Explore Elutia's Fair Values from the Community and select yours

Elutia Inc. (NASDAQ:ELUT) just released its latest quarterly report and things are not looking great. It was a pretty negative result overall, with revenues of US$6.3m missing analyst predictions by 4.4%. Worse, the business reported a statutory loss of US$0.23 per share, much larger than the analysts had forecast prior to the result. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality.

Following the latest results, Elutia's twin analysts are now forecasting revenues of US$28.6m in 2025. This would be a huge 21% improvement in revenue compared to the last 12 months. Per-share losses are supposed to see a sharp uptick, reaching US$0.60. Before this latest report, the consensus had been expecting revenues of US$28.7m and US$0.71 per share in losses. While the revenue estimates were largely unchanged, sentiment seems to have improved, with the analysts upgrading their numbers and making a cut to losses per share in particular.

Check out our latest analysis for Elutia

Even with the lower forecast losses, the analysts lowered their valuations, with the average price target falling 13% to US$6.50. It looks likethe analysts have become less optimistic about the overall business.

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. One thing stands out from these estimates, which is that Elutia is forecast to grow faster in the future than it has in the past, with revenues expected to display 46% annualised growth until the end of 2025. If achieved, this would be a much better result than the 17% annual decline over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue grow 20% per year. Not only are Elutia's revenues expected to improve, it seems that the analysts are also expecting it to grow faster than the wider industry.

The Bottom Line

The most obvious conclusion is that the analysts made no changes to their forecasts for a loss next year. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Elutia's future valuation.

With that in mind, we wouldn't be too quick to come to a conclusion on Elutia. Long-term earnings power is much more important than next year's profits. We have analyst estimates for Elutia going out as far as 2027, and you can see them free on our platform here.

That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 6 warning signs with Elutia (at least 2 which are concerning) , and understanding these should be part of your investment process.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.