Yahoo Finance The Aziyo Biologics, Inc. (NASDAQ:AZYO) Second-Quarter Results Are Out And Analysts Have Published New Forecasts
Aziyo Biologics, Inc. (NASDAQ:AZYO) shareholders are probably feeling a little disappointed, since its shares fell 2.4% to US$7.93 in the week after its latest quarterly results. It looks like the results were pretty good overall. While revenues of US$12m were in line with analyst predictions, statutory losses were much smaller than expected, with Aziyo Biologics losing US$0.23 per share. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Aziyo Biologics after the latest results.
View our latest analysis for Aziyo Biologics
Following last week's earnings report, Aziyo Biologics' four analysts are forecasting 2021 revenues to be US$48.7m, approximately in line with the last 12 months. Losses are predicted to fall substantially, shrinking 34% to US$2.00. Before this latest report, the consensus had been expecting revenues of US$49.5m and US$2.07 per share in losses. It looks like there's been a modest increase in sentiment in the recent updates, with the analysts becoming a bit more optimistic in their predictions for losses per share, even though the revenue numbers were unchanged.
There's been no major changes to the consensus price target of US$16.50, suggesting that reduced loss estimates are not enough to have a long-term positive impact on the stock's valuation. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Aziyo Biologics, with the most bullish analyst valuing it at US$20.00 and the most bearish at US$14.00 per share. 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 Aziyo Biologics' past performance and to peers in the same industry. These estimates imply that sales are expected to slow, with a forecast annualised revenue decline of 2.3% by the end of 2021. This indicates a significant reduction from annual growth of 18% over the last year. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 10% annually for the foreseeable future. It's pretty clear that Aziyo Biologics' revenues are expected to perform substantially worse than the wider industry.
The Bottom Line
The most obvious conclusion is that the analysts made no changes to their forecasts for a loss next year. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting sales are tracking in line with expectations - although our data does suggest that Aziyo Biologics' revenues are expected to perform worse than the wider industry. The consensus price target held steady at US$16.50, with the latest estimates not enough to have an impact on their price targets.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates - from multiple Aziyo Biologics analysts - going out to 2023, and you can see them free on our platform here.
However, before you get too enthused, we've discovered 3 warning signs for Aziyo Biologics that you should be aware of.
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.
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