Gentian Diagnostics ASA (OB:GENT) shareholders are probably feeling a little disappointed, since its shares fell 2.3% to kr41.90 in the week after its latest yearly results. It was an okay result overall, with revenues coming in at kr142m, roughly what the analyst had been expecting. This is an important time for investors, as they can track a company’s performance in its report, look at what expert is forecasting for next year, and see if there has been any change to expectations for the business. So we collected the latest post-earnings statutory consensus estimate to see what could be in store for next year.
Check out our latest analysis for Gentian Diagnostics
Taking into account the latest results, the consensus forecast from Gentian Diagnostics’ single analyst is for revenues of kr170.5m in 2024. This reflects a decent 20% improvement in revenue compared to the last 12 months. Losses are expected to increase substantially, hitting kr0.75 per share. Before this latest report, the consensus had been expecting revenues of kr171.7m and kr0.53 per share in losses. While this year’s revenue estimates held steady, there was also a sizeable expansion in loss per share expectations, suggesting the consensus has a bit of a mixed view on the stock.
The consensus price target held steady at kr54.00, seemingly implying that the higher forecast losses are not expected to have a long term impact on the company’s valuation.
Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. The period to the end of 2024 brings more of the same, according to the analyst, with revenue forecast to display 20% growth on an annualised basis. That is in line with its 22% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 6.8% per year. So although Gentian Diagnostics is expected to maintain its revenue growth rate, it’s definitely expected to grow faster than the wider industry.
The Bottom Line
The most important thing to take away is that the analyst increased their loss per share estimates for next year. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.
Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year’s earnings. At least one analyst has provided forecasts out to 2026, which can be seen for free on our platform here.
It is also worth noting that we have found 2 warning signs for Gentian Diagnostics that you need to take into consideration.
Valuation is complex, but we’re helping make it simple.
Find out whether Gentian Diagnostics is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.
