Yahoo Finance Analysts Are Updating Their TELA Bio, Inc. (NASDAQ:TELA) Estimates After Its Full-Year Results
Investors in TELA Bio, Inc. (NASDAQ:TELA) had a good week, as its shares rose 7.5% to close at US$5.73 following the release of its annual results. TELA Bio reported revenues of US$58m, in line with expectations, but it unfortunately also reported (statutory) losses of US$2.04 per share, which were slightly larger than expected. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on TELA Bio after the latest results.
View our latest analysis for TELA Bio
Taking into account the latest results, the most recent consensus for TELA Bio from five analysts is for revenues of US$74.9m in 2024. If met, it would imply a major 28% increase on its revenue over the past 12 months. The loss per share is expected to ameliorate slightly, reducing to US$1.83. Before this latest report, the consensus had been expecting revenues of US$75.2m and US$1.61 per share in losses. While this year's revenue estimates held steady, there was also a noticeable increase in loss per share expectations, suggesting the consensus has a bit of a mixed view on the stock.
As a result, there was no major change to the consensus price target of US$14.60, with the analysts implicitly confirming that the business looks to be performing in line with expectations, despite higher forecast losses. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on TELA Bio, with the most bullish analyst valuing it at US$18.00 and the most bearish at US$12.00 per share. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.
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. We can infer from the latest estimates that forecasts expect a continuation of TELA Bio'shistorical trends, as the 28% annualised revenue growth to the end of 2024 is roughly in line with the 35% 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 7.9% per year. So it's pretty clear that TELA Bio is forecast to grow substantially faster than its industry.
The Bottom Line
The most important thing to take away is that the analysts increased their loss per share estimates for next year. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. The consensus price target held steady at US$14.60, with the latest estimates not enough to have an impact on their price targets.
With that in mind, we wouldn't be too quick to come to a conclusion on TELA Bio. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple TELA Bio analysts - going out to 2026, and you can see them free on our platform here.
You should always think about risks though. Case in point, we've spotted 2 warning signs for TELA Bio you should be aware of.
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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.
