Mesa Laboratories, Inc. Just Beat Earnings Expectations: Here's What Analysts Think Will Happen Next

Mesa Laboratories, Inc. (NASDAQ:MLAB) last week reported its latest third-quarter results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. It looks to have been a decent result overall - while revenue fell marginally short of analyst estimates at US$53m, statutory earnings beat expectations by a notable 875%, coming in at US$0.39 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

Check out our latest analysis for Mesa Laboratories

Following the latest results, Mesa Laboratories' three analysts are now forecasting revenues of US$237.0m in 2025. This would be a decent 11% improvement in revenue compared to the last 12 months. Per-share earnings are expected to soar 165% to US$0.47. In the lead-up to this report, the analysts had been modelling revenues of US$242.7m and earnings per share (EPS) of US$0.99 in 2025. From this we can that sentiment has definitely become more bearish after the latest results, leading to lower revenue forecasts and a pretty serious reduction to earnings per share estimates.

Despite the cuts to forecast earnings, there was no real change to the US$127 price target, showing that the analysts don't think the changes have a meaningful impact on its intrinsic value. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values Mesa Laboratories at US$130 per share, while the most bearish prices it at US$124. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

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 Mesa Laboratories' revenue growth is expected to slow, with the forecast 9.0% annualised growth rate until the end of 2025 being well below the historical 18% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 6.1% annually. So it's pretty clear that, while Mesa Laboratories' revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. They also downgraded Mesa Laboratories' revenue estimates, but industry data suggests that it is expected to grow faster than the wider industry. The consensus price target held steady at US$127, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for Mesa Laboratories going out to 2026, and you can see them free on our platform here.

It is also worth noting that we have found 2 warning signs for Mesa Laboratories (1 is concerning!) that you need to take into consideration.

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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.