Last week, you might have seen that Isoray, Inc. (NYSEMKT:ISR) released its quarterly result to the market. The early response was not positive, with shares down 6.4% to US$0.37 in the past week. Revenues of US$2.4m came in a modest 2.7% below forecasts. Statutory losses were a relative bright spot though, with a per-share loss of US$0.01 coming in a substantial 50% smaller than what the analysts had 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.
After the latest results, the twin analysts covering Isoray are now predicting revenues of US$11.1m in 2021. If met, this would reflect a solid 14% improvement in sales compared to the last 12 months. Losses are forecast to balloon 22% to US$0.06 per share. Before this earnings announcement, the analysts had been modelling revenues of US$11.0m and losses of US$0.04 per share in 2021. So it's pretty clear the analysts have mixed opinions on Isoray even after this update; although they reconfirmed their revenue numbers, it came at the cost of a per-share losses.
The consensus price target held steady at US$1.43, seemingly implying that the higher forecast losses are not expected to have a long term impact on the company's valuation.
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. We can infer from the latest estimates that forecasts expect a continuation of Isoray'shistorical trends, as next year's 14% revenue growth is roughly in line with 17% annual revenue growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 21% per year. So although Isoray is expected to maintain its revenue growth rate, it's forecast to grow slower than the wider industry.
The Bottom Line
The most important thing to take away is that the analysts increased their loss per share estimates for next year. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting sales are tracking in line with expectations - although our data does suggest that Isoray's revenues are expected to perform worse than the wider industry. The consensus price target held steady at US$1.43, with the latest estimates not enough to have an impact on their price targets.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At least one analyst has provided forecasts out to 2025, which can be seen for free on our platform here.
You should always think about risks though. Case in point, we've spotted 5 warning signs for Isoray you should be aware of, and 1 of them is significant.
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This article by Simply Wall St is general in nature. 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.
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