Yahoo Finance Earnings Update: Vascular Biogenics Ltd. (NASDAQ:VBLT) Just Reported And Analysts Are Boosting Their Estimates
Vascular Biogenics Ltd. (NASDAQ:VBLT) just released its latest first-quarter results and things are looking bullish. Results clearly exceeded expectations, with a substantial revenue beat leading to smaller losses in what looks like a definite win for investors. Revenues were US$366k and the statutory loss per share was US$0.15, smaller than the analysts had forecast. 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.
View our latest analysis for Vascular Biogenics
Taking into account the latest results, Vascular Biogenics' three analysts currently expect revenues in 2020 to be US$703.0k, approximately in line with the last 12 months. Losses are forecast to narrow 2.4% to US$0.56 per share. Before this latest report, the consensus had been expecting revenues of US$655.0k and US$0.67 per share in losses. There's been a pretty noticeable increase in sentiment, with the analysts upgrading revenues and making a loss per share in particular.
There was no major change to the consensus price target of US$3.88, perhaps suggesting that the analysts remain concerned about ongoing losses despite the improved earnings and revenue outlook. 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 Vascular Biogenics, with the most bullish analyst valuing it at US$5.00 and the most bearish at US$2.50 per share. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Vascular Biogenics' past performance and to peers in the same industry. These estimates imply that sales are expected to slow, with a forecast revenue decline of 0.8%, a significant reduction from annual growth of 11% over the last year. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 24% next year. It's pretty clear that Vascular Biogenics' revenues are expected to perform substantially worse than the wider industry.
The Bottom Line
The most important thing to take away is that the analysts reconfirmed their loss per share estimates for next year. They also upgraded their revenue estimates for next year, even though sales are expected to grow slower than the wider industry. The consensus price target held steady at US$3.88, 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 forecasts for Vascular Biogenics going out to 2022, and you can see them free on our platform here.
Even so, be aware that Vascular Biogenics is showing 5 warning signs in our investment analysis , and 1 of those is a bit concerning...
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