Yahoo Finance Danimer Scientific, Inc. (NYSE:DNMR) Just Reported And Analysts Have Been Cutting Their Estimates
Danimer Scientific, Inc. (NYSE:DNMR) shareholders are probably feeling a little disappointed, since its shares fell 6.7% to US$0.75 in the week after its latest first-quarter results. It was a moderately negative result overall - revenue fell 4.7% short of analyst estimates at US$10m, and statutory losses were in line with analyst expectations, at US$0.20 per share. 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 thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
Check out our latest analysis for Danimer Scientific
Taking into account the latest results, the consensus forecast from Danimer Scientific's five analysts is for revenues of US$60.9m in 2024. This reflects a major 35% improvement in revenue compared to the last 12 months. Losses are predicted to fall substantially, shrinking 27% to US$0.92. Yet prior to the latest earnings, the analysts had been forecasting revenues of US$78.3m and losses of US$0.68 per share in 2024. So there's been quite a change-up of views after the recent consensus updates, withthe analysts making a serious cut to their revenue outlook while also expecting losses per share to increase.
There was no major change to the consensus price target of US$1.13, signalling that the business is performing roughly in line with expectations, despite lower earnings per share forecasts. 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 Danimer Scientific, with the most bullish analyst valuing it at US$2.00 and the most bearish at US$1.00 per share. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.
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. One thing stands out from these estimates, which is that Danimer Scientific is forecast to grow faster in the future than it has in the past, with revenues expected to display 50% annualised growth until the end of 2024. If achieved, this would be a much better result than the 4.9% annual decline over the past three years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 4.9% annually. So it looks like Danimer Scientific is expected to grow faster than its competitors, at least for a while.
The Bottom Line
The most important thing to take away is that the analysts increased their loss per share estimates for next year. They also downgraded Danimer Scientific's revenue estimates, but industry data suggests that it is 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.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Danimer Scientific 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 5 warning signs for Danimer Scientific you should be aware of, and 2 of them are a bit unpleasant.
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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.
