Yahoo Finance Analyst Estimates: Here's What Brokers Think Of Aroa Biosurgery Limited (ASX:ARX) After Its Annual Report
Investors in Aroa Biosurgery Limited (ASX:ARX) had a good week, as its shares rose 6.2% to close at AU$1.20 following the release of its yearly results. Sales hit NZ$22m in line with forecasts, although the company reported a statutory loss per share of NZ$0.064 that was somewhat smaller than the analysts expected. 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.
See our latest analysis for Aroa Biosurgery
After the latest results, the twin analysts covering Aroa Biosurgery are now predicting revenues of NZ$31.1m in 2022. If met, this would reflect a sizeable 39% improvement in sales compared to the last 12 months. Losses are predicted to fall substantially, shrinking 53% to NZ$0.03. Before this earnings announcement, the analysts had been modelling revenues of NZ$31.5m and losses of NZ$0.017 per share in 2022. So it's pretty clear the analysts have mixed opinions on Aroa Biosurgery even after this update; although they reconfirmed their revenue numbers, it came at the cost of a massive increase in per-share losses.
The consensus price target held steady at NZ$5.24, seemingly implying that the higher forecast losses are not expected to have a long term impact on the company's valuation.
Of course, another way to look at these forecasts is to place them into context against the industry itself. It's clear from the latest estimates that Aroa Biosurgery's rate of growth is expected to accelerate meaningfully, with the forecast 39% annualised revenue growth to the end of 2022 noticeably faster than its historical growth of 15% p.a. over the past three years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 10% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Aroa Biosurgery to grow faster than the wider industry.
The Bottom Line
The most important thing to take away is that the analysts 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.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At least one analyst has provided forecasts out to 2024, which can be seen for free on our platform here.
You can also see our analysis of Aroa Biosurgery's Board and CEO remuneration and experience, and whether company insiders have been buying stock.
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. 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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