Standard BioTools Inc. (NASDAQ:LAB) Analysts Are Cutting Their Estimates: Here's What You Need To Know

It's been a mediocre week for Standard BioTools Inc. (NASDAQ:LAB) shareholders, with the stock dropping 18% to US$1.07 in the week since its latest full-year results. The statutory results were not great - while revenues of US$174m were in line with expectations,Standard BioTools lost US$0.52 a share in the process. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Standard BioTools after the latest results.

View our latest analysis for Standard BioTools

Taking into account the latest results, the three analysts covering Standard BioTools provided consensus estimates of US$169.2m revenue in 2025, which would reflect a measurable 3.0% decline over the past 12 months. Losses are predicted to fall substantially, shrinking 48% to US$0.26. Before this earnings announcement, the analysts had been modelling revenues of US$187.9m and losses of US$0.22 per share in 2025. While this year's revenue estimates dropped there was also a noticeable increase in loss per share expectations, suggesting the consensus has a bit of a mixed view on the stock.

The consensus price target fell 23% to US$2.38, with the analysts clearly concerned about the company following the weaker revenue and earnings outlook. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. The most optimistic Standard BioTools analyst has a price target of US$2.50 per share, while the most pessimistic values it at US$2.25. This is a very narrow spread of estimates, implying either that Standard BioTools is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We would highlight that revenue is expected to reverse, with a forecast 3.0% annualised decline to the end of 2025. That is a notable change from historical growth of 1.6% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 5.9% per year. It's pretty clear that Standard BioTools' revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The most important thing to note is the forecast of increased losses next year, suggesting all may not be well at Standard BioTools. Unfortunately, they also downgraded their revenue estimates, and our data indicates underperformance compared to the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. 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 in mind, we wouldn't be too quick to come to a conclusion on Standard BioTools. Long-term earnings power is much more important than next year's profits. We have forecasts for Standard BioTools going out to 2027, and you can see them free on our platform here.

Don't forget that there may still be risks. For instance, we've identified 3 warning signs for Standard BioTools 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.