Veracyte, Inc. Just Beat EPS By 260%: Here's What Analysts Think Will Happen Next

As you might know, Veracyte, Inc. (NASDAQ:VCYT) just kicked off its latest quarterly results with some very strong numbers. The company beat forecasts, with revenue of US$114m, some 3.2% above estimates, and statutory earnings per share (EPS) coming in at US$0.09, 260% ahead of expectations. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

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Following the latest results, Veracyte's eleven analysts are now forecasting revenues of US$492.7m in 2025. This would be a reasonable 6.3% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to jump 20% to US$0.51. In the lead-up to this report, the analysts had been modelling revenues of US$488.3m and earnings per share (EPS) of US$0.48 in 2025. So the consensus seems to have become somewhat more optimistic on Veracyte's earnings potential following these results.

View our latest analysis for Veracyte

The consensus price target fell 5.2% to US$40.00, suggesting the increase in earnings forecasts was not enough to offset other the analysts concerns. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. Currently, the most bullish analyst values Veracyte at US$45.00 per share, while the most bearish prices it at US$29.00. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Veracyte's past performance and to peers in the same industry. We would highlight that Veracyte's revenue growth is expected to slow, with the forecast 8.5% annualised growth rate until the end of 2025 being well below the historical 28% 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 18% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Veracyte.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Veracyte following these results. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse 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.

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 Veracyte analysts - going out to 2027, and you can see them free on our platform here.

We also provide an overview of the Veracyte Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, 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.