Need To Know: Analysts Just Made A Substantial Cut To Their Maravai LifeSciences Holdings, Inc. (NASDAQ:MRVI) Estimates

One thing we could say about the analysts on Maravai LifeSciences Holdings, Inc. (NASDAQ:MRVI) - they aren't optimistic, having just made a major negative revision to their near-term (statutory) forecasts for the organization. Both revenue and earnings per share (EPS) estimates were cut sharply as the analysts factored in the latest outlook for the business, concluding that they were too optimistic previously.

Following the latest downgrade, the 13 analysts covering Maravai LifeSciences Holdings provided consensus estimates of US$308m revenue in 2023, which would reflect a painful 43% decline on its sales over the past 12 months. After this downgrade, the company is anticipated to report a loss of US$0.039 in 2023, a sharp decline from a profit over the last year. Previously, the analysts had been modelling revenues of US$404m and earnings per share (EPS) of US$0.23 in 2023. There looks to have been a major change in sentiment regarding Maravai LifeSciences Holdings' prospects, with a sizeable cut to revenues and the analysts now forecasting a loss instead of a profit.

View our latest analysis for Maravai LifeSciences Holdings

The consensus price target fell 28% to US$13.43, with the analysts clearly concerned about the company following the weaker revenue and earnings outlook.

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. Over the past year, revenues have declined around 41% annually. Worse, forecasts are essentially predicting the decline to accelerate, with the estimate for an annualised 68% decline in revenue until the end of 2023. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue grow 6.4% per year. So it's pretty clear that, while it does have declining revenues, the analysts also expect Maravai LifeSciences Holdings to suffer worse than the wider industry.

The Bottom Line

The biggest low-light for us was that the forecasts for Maravai LifeSciences Holdings dropped from profits to a loss this year. Unfortunately analysts also downgraded their revenue estimates, and industry data suggests that Maravai LifeSciences Holdings' revenues are expected to grow slower than the wider market. After such a stark change in sentiment from analysts, we'd understand if readers now felt a bit wary of Maravai LifeSciences Holdings.

So things certainly aren't looking great, and you should also know that we've spotted some potential warning signs with Maravai LifeSciences Holdings, including its declining profit margins. Learn more, and discover the 1 other warning sign we've identified, for free on our platform here.

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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.