Yahoo Finance Here's What Analysts Are Forecasting For Adaptive Biotechnologies Corporation After Its Annual Results
Adaptive Biotechnologies Corporation (NASDAQ:ADPT) defied analyst predictions to release its yearly results, which were ahead of market expectations. Results overall were solid, with revenues arriving 3.0% better than analyst forecasts at US$85m. Higher revenues also resulted in substantially lower statutory losses which, at US$1.01 per share, were 3.0% smaller than analysts expected. Earnings are an important time for investors, as they can track a company's performance, look at what top analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether analysts have changed their mind on Adaptive Biotechnologies after the latest results.
Check out our latest analysis for Adaptive Biotechnologies
Following the latest results, Adaptive Biotechnologies's five analysts are now forecasting revenues of US$117.5m in 2020. This would be a huge 38% improvement in sales compared to the last 12 months. Per-share losses are expected to creep up to US$0.94, on a statutory basis. Before this earnings announcement, analysts had been forecasting revenues of US$115.7m and losses of US$0.87 per share in 2020. Although the revenue estimates have not really changed, we can see there's been a earnings per share expectations, suggesting that analysts have become more bullish after the latest result.
As a result, there was no major change to the consensus price target of US$44.75, with analysts implicitly confirming that the business looks to be performing in line with expectations, despite higher forecast losses. 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 Adaptive Biotechnologies at US$46.00 per share, while the most bearish prices it at US$43.00. Still, with such a tight range of estimates, it suggests analysts have a pretty good idea of what they think the company is worth.
It can also be useful to step back and take a broader view of how analyst forecasts compare to Adaptive Biotechnologies's performance in recent years. It's pretty clear that analysts expect Adaptive Biotechnologies's revenue growth will slow down substantially, with revenues next year expected to grow 38%, compared to a historical growth rate of 53% over the past year. By way of comparison, other companies in this market with analyst coverage, are forecast to grow their revenue at 7.5% next year. Even after the forecast slowdown in growth, it seems obvious that analysts still thinkAdaptive Biotechnologies will grow faster than the wider market.
The Bottom Line
The most important thing to take away is that analysts reconfirmed their loss per share estimates for next year. Fortunately, analysts also reconfirmed their revenue estimates, suggesting sales are tracking in line with expectations - and our data does suggest that Adaptive Biotechnologies's revenues are expected to grow faster than the wider market. The consensus price target held steady at US$44.75, with the latest estimates not enough to have an impact on analysts' estimated valuations.
With that in mind, we wouldn't be too quick to come to a conclusion on Adaptive Biotechnologies. Long-term earnings power is much more important than next year's profits. We have forecasts for Adaptive Biotechnologies going out to 2024, and you can see them free on our platform here.
We also provide an overview of the Adaptive Biotechnologies Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, here.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.
