Yahoo Finance Here's What Analysts Are Forecasting For Aroa Biosurgery Limited (ASX:ARX) After Its Full-Year Results
Investors in Aroa Biosurgery Limited (ASX:ARX) had a good week, as its shares rose 3.1% to close at AU$0.49 following the release of its yearly results. Revenues were in line with expectations, at NZ$69m, while statutory losses ballooned to NZ$0.031 per share. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
Check out our latest analysis for Aroa Biosurgery
Taking into account the latest results, the current consensus from Aroa Biosurgery's five analysts is for revenues of NZ$85.7m in 2025. This would reflect a huge 24% increase on its revenue over the past 12 months. Per-share statutory losses are expected to explode, reaching NZ$0.00063 per share. Yet prior to the latest earnings, the analysts had been anticipated revenues of NZ$87.1m and earnings per share (EPS) of NZ$0.0068 in 2025. So despite reconfirming their revenue estimates, the analysts are now forecasting a loss instead of a profit, which looks like a definite drop in sentiment following the latest results.
As a result, there was no major change to the consensus price target of AU$0.99, with the analysts implicitly confirming that the business looks to be performing in line with expectations, despite higher forecast losses. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values Aroa Biosurgery at AU$1.05 per share, while the most bearish prices it at AU$0.90. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.
Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. The period to the end of 2025 brings more of the same, according to the analysts, with revenue forecast to display 24% growth on an annualised basis. That is in line with its 29% 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 8.4% per year. So although Aroa Biosurgery 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 analysts are expecting Aroa Biosurgery to become unprofitable 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 AU$0.99, 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 Aroa Biosurgery. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Aroa Biosurgery analysts - going out to 2027, and you can see them free on our platform here.
We also provide an overview of the Aroa Biosurgery Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, here.
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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.
