Yahoo Finance US$1.00: That's What Analysts Think Biocept, Inc. (NASDAQ:BIOC) Is Worth After Its Latest Results
It's been a good week for Biocept, Inc. (NASDAQ:BIOC) shareholders, because the company has just released its latest annual results, and the shares gained 4.4% to US$0.28. It was a pretty bad result overall; while revenues were in line with expectations at US$5.5m, statutory losses exploded to US$1.22 per share. Following the result, the analyst has updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we gathered the latest post-earnings forecasts to see what estimate suggests is in store for next year.
Check out our latest analysis for Biocept
Taking into account the latest results, the consensus forecast from Biocept's one analyst is for revenues of US$8.29m in 2020, which would reflect a major 50% improvement in sales compared to the last 12 months. Losses are predicted to fall substantially, shrinking 83% to US$0.21. Before this latest report, the consensus had been expecting revenues of US$9.35m and US$0.33 per share in losses. We can see there's definitely been a change in sentiment in this update, with the analyst administering a meaningful downgrade to next year's revenue estimates, while at the same time reducing their loss estimates.
The consensus price target fell 67% to US$1.00, with the dip in revenue estimates clearly souring sentiment, despite the forecast reduction in losses.
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. The analyst is definitely expecting Biocept's growth to accelerate, with the forecast 50% growth ranking favourably alongside historical growth of 34% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 16% next year. It seems obvious that, while the growth outlook is brighter than the recent past, the analyst also expect Biocept to grow faster than the wider industry.
The Bottom Line
The most obvious conclusion is that the analyst made no changes to their forecasts for a loss next year. Regrettably, they also downgraded their revenue estimates, but the latest forecasts still imply the business will grow faster than the wider industry. Still, earnings per share are more important to value creation for shareholders. The consensus price target fell measurably, with the analyst seemingly not reassured by the latest results, leading to a lower estimate of Biocept's future valuation.
With that in mind, we wouldn't be too quick to come to a conclusion on Biocept. Long-term earnings power is much more important than next year's profits. We have analyst estimates for Biocept going out as far as 2024, and you can see them free on our platform here.
We don't want to rain on the parade too much, but we did also find 5 warning signs for Biocept (2 can't be ignored!) that you need to be mindful of.
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