Harvard Bioscience, Inc. (NASDAQ:HBIO) Just Reported, And Analysts Assigned A US$3.00 Price Target

Harvard Bioscience, Inc. (NASDAQ:HBIO) investors will be delighted, with the company turning in some strong numbers with its latest results. Revenues and losses per share were both better than expected, with revenues of US$20m leading estimates by 9.1%. Statutory losses were smaller than the analystsexpected, coming in at US$0.05 per share. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

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Taking into account the latest results, the current consensus, from the twin analysts covering Harvard Bioscience, is for revenues of US$84.0m in 2025. This implies a perceptible 5.4% reduction in Harvard Bioscience's revenue over the past 12 months. Losses are expected to hold steady at around US$1.28. Before this latest report, the consensus had been expecting revenues of US$86.5m and US$1.20 per share in losses. Overall it looks as though the analysts are negative in this update. Although revenue forecasts held steady, the consensus also made a modest increase to to its losses per share forecasts.

View our latest analysis for Harvard Bioscience

The average price target fell 33% to US$3.00, implicitly signalling that lower earnings per share are a leading indicator for Harvard Bioscience's valuation.

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. One more thing stood out to us about these estimates, and it's the idea that Harvard Bioscience's decline is expected to accelerate, with revenues forecast to fall at an annualised rate of 10% to the end of 2025. This tops off a historical decline of 2.7% a year over the past five years. Compare this against analyst estimates for companies in the broader industry, which suggest that revenues (in aggregate) are expected to grow 6.0% annually. So it's pretty clear that, while it does have declining revenues, the analysts also expect Harvard Bioscience to suffer worse than the wider industry.

The Bottom Line

The most important thing to take away is that the analysts increased their loss per share estimates for next year. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse than the wider industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

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 2026, which can be seen for free on our platform here.

Don't forget that there may still be risks. For instance, we've identified 3 warning signs for Harvard Bioscience (1 is a bit unpleasant) 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.