LogicBio Therapeutics, Inc. (NASDAQ:LOGC) Just Reported Second-Quarter Earnings And Analysts Are Lifting Their Estimates

LogicBio Therapeutics, Inc. (NASDAQ:LOGC) just released its second-quarter report and things are looking bullish. The results were impressive, with revenues of US$3.2m exceeding analyst forecasts by 255%, and statutory losses of US$0.15 were likewise much smaller than the analysts had forecast. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

See our latest analysis for LogicBio Therapeutics

Taking into account the latest results, LogicBio Therapeutics' twin analysts currently expect revenues in 2022 to be US$10.0m, approximately in line with the last 12 months. Losses are supposed to decline, shrinking 17% from last year to US$0.78. Before this earnings announcement, the analysts had been modelling revenues of US$7.15m and losses of US$0.94 per share in 2022. We can see there's definitely been a change in sentiment in this update, with the analysts administering a sizeable upgrade to this year's revenue estimates, while at the same time reducing their loss estimates.

The consensus price target fell 22%, to US$2.33, suggesting that the analysts remain pessimistic on the company, despite the improved earnings and revenue outlook.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We would highlight that sales are expected to reverse, with a forecast 3.2% annualised revenue decline to the end of 2022. That is a notable change from historical growth of 89% over the last three years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 15% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - LogicBio Therapeutics is expected to lag 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. They also upgraded their revenue estimates for next year, even though sales are expected to grow slower 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 LogicBio Therapeutics' future valuation.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have analyst estimates for LogicBio Therapeutics going out as far as 2023, and you can see them free on our platform here.

We don't want to rain on the parade too much, but we did also find 4 warning signs for LogicBio Therapeutics (1 is potentially serious!) that you need to be mindful of.

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.