Vericel Corporation (NASDAQ:VCEL) First-Quarter Results: Here's What Analysts Are Forecasting For This Year

Vericel Corporation (NASDAQ:VCEL) just released its first-quarter report and things are looking bullish. Revenues and losses per share were both better than expected, with revenues of US$51m leading estimates by 4.5%. Statutory losses were smaller than the analystsexpected, coming in at US$0.08 per share. 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 thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

Check out our latest analysis for Vericel

Taking into account the latest results, the current consensus from Vericel's six analysts is for revenues of US$240.2m in 2024. This would reflect a notable 16% increase on its revenue over the past 12 months. Per-share earnings are expected to bounce 1,042% to US$0.11. Before this earnings report, the analysts had been forecasting revenues of US$239.2m and earnings per share (EPS) of US$0.08 in 2024. There was no real change to the revenue estimates, but the analysts do seem more bullish on earnings, given the very substantial lift in earnings per share expectations following these results.

There's been no major changes to the consensus price target of US$55.40, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's 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. The most optimistic Vericel analyst has a price target of US$57.00 per share, while the most pessimistic values it at US$53.00. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Vericel is an easy business to forecast or the the analysts are all using similar assumptions.

Of course, another way to look at these forecasts is to place them into context against the industry itself. The analysts are definitely expecting Vericel's growth to accelerate, with the forecast 21% annualised growth to the end of 2024 ranking favourably alongside historical growth of 14% per annum over the past five years. Other similar companies in the industry (with analyst coverage) are also forecast to grow their revenue at 19% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Vericel is expected to grow at about the same rate as the wider industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Vericel's earnings potential next year. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Vericel analysts - going out to 2026, and you can see them free on our platform here.

It is also worth noting that we have found 1 warning sign for Vericel 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.