Analysts Have Lowered Expectations For Seer, Inc. (NASDAQ:SEER) After Its Latest Results

As you might know, Seer, Inc. (NASDAQ:SEER) just kicked off its latest quarterly results with some very strong numbers. Revenues were better than expected, with US$4.0m in sales some 13% ahead of forecasts. The company still lost US$0.38 per share, although the losses were marginally smaller than the analysts expected. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

Our analysis indicates that SEER is potentially undervalued!

Taking into account the latest results, the current consensus from Seer's four analysts is for revenues of US$27.1m in 2023, which would reflect a sizeable 94% increase on its sales over the past 12 months. Losses are forecast to balloon 22% to US$1.75 per share. Before this latest report, the consensus had been expecting revenues of US$33.0m and US$1.68 per share in losses. So there's been quite a change-up of views after the recent consensus updates, withthe analysts making a serious cut to their revenue outlook while also expecting losses per share to increase.

The consensus price target fell 19% to US$10.00, with the analysts clearly concerned about the company following the weaker revenue and earnings outlook. 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 Seer at US$11.00 per share, while the most bearish prices it at US$9.00. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

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. We would highlight that Seer's revenue growth is expected to slow, with the forecast 70% annualised growth rate until the end of 2023 being well below the historical 113% p.a. growth over the last three years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 6.0% annually. So it's pretty clear that, while Seer's 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 increased their loss per share estimates for next year. They also downgraded their revenue estimates, although industry data suggests that Seer's revenues are expected to grow faster than the wider industry. 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.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for Seer going out to 2024, and you can see them free on our platform here..

However, before you get too enthused, we've discovered 2 warning signs for Seer 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.