Matinas BioPharma Holdings, Inc. (NYSEMKT:MTNB) investors will be delighted, with the company turning in some strong numbers with its latest results. Overall results were decent, with revenues of US$96k beating estimates by369%. Statutory losses were subsequently less thanthe analysts had expected, at US$0.03 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
After the latest results, the five analysts covering Matinas BioPharma Holdings are now predicting revenues of US$1.24m in 2021. If met, this would reflect a substantial 1,194% improvement in sales compared to the last 12 months. Per-share losses are expected to explode, reaching US$0.17 per share. Before this earnings announcement, the analysts had been modelling revenues of US$1.04m and losses of US$0.17 per share in 2021. So there's definitely been a change in sentiment in this update, with the analysts upgrading next year's revenue estimates, while at the same time holding losses per share steady.
There were no major changes to the US$3.38consensus price target despite the higher revenue estimates, with the analysts seeming to believe that ongoing losses have a larger impact on the valuation than growing sales. 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. There are some variant perceptions on Matinas BioPharma Holdings, with the most bullish analyst valuing it at US$5.00 and the most bearish at US$1.80 per share. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.
One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. One thing stands out from these estimates, which is that Matinas BioPharma Holdings is forecast to grow faster in the future than it has in the past, with revenues expected to grow many times over. If achieved, this would be a much better result than the 9.1% annual decline over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue grow 21% per year. So it looks like Matinas BioPharma Holdings is expected to grow faster than its competitors, at least for a while.
The Bottom Line
The most important thing to take away is that the analysts reconfirmed their loss per share estimates for next year. Happily, they also upgraded their revenue estimates, and are forecasting revenues to grow faster than the wider industry. The consensus price target held steady at US$3.38, with the latest estimates not enough to have an impact on their price targets.
With that in mind, we wouldn't be too quick to come to a conclusion on Matinas BioPharma Holdings. Long-term earnings power is much more important than next year's profits. We have forecasts for Matinas BioPharma Holdings going out to 2024, and you can see them free on our platform here.
You should always think about risks though. Case in point, we've spotted 3 warning signs for Matinas BioPharma Holdings you should be aware of, and 1 of them shouldn't be ignored.
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