Earnings Update: MediWound Ltd. (NASDAQ:MDWD) Just Reported And Analysts Are Trimming Their Forecasts

MediWound Ltd. (NASDAQ:MDWD) just released its latest quarterly report and things are not looking great. It was not a great statutory result, with revenues coming in 27% lower than the analysts predicted. Unsurprisingly, earnings also fell seriously short of forecasts, turning into a per-share loss of US$0.98. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

View our latest analysis for MediWound

After the latest results, the four analysts covering MediWound are now predicting revenues of US$26.5m in 2025. If met, this would reflect a sizeable 34% improvement in revenue compared to the last 12 months. Losses are supposed to decline, shrinking 15% from last year to US$2.22. Before this latest report, the consensus had been expecting revenues of US$28.2m and US$2.15 per share in losses. So it's pretty clear consensus is more negative on MediWound after the new consensus numbers; while the analysts trimmed their revenue estimates, they also administered a pronounced increase to per-share loss expectations.

The average price target was broadly unchanged at US$29.00, perhaps implicitly signalling that the weaker earnings outlook is not expected to have a long-term impact on the valuation. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on MediWound, with the most bullish analyst valuing it at US$36.00 and the most bearish at US$25.00 per share. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

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. For example, we noticed that MediWound's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 27% growth to the end of 2025 on an annualised basis. That is well above its historical decline of 5.7% 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 10% annually. So it looks like MediWound is expected to grow faster than its competitors, at least for a while.

The Bottom Line

The most important thing to note is the forecast of increased losses next year, suggesting all may not be well at MediWound. Regrettably, they also downgraded their revenue estimates, but the latest forecasts still imply the business will grow faster than the wider industry. The consensus price target held steady at US$29.00, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for MediWound going out to 2026, 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 2 warning signs for MediWound that you need to be mindful 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.