Yahoo Finance Pacific Biosciences of California, Inc. (NASDAQ:PACB) Analysts Just Slashed This Year's Revenue Estimates By 18%
Market forces rained on the parade of Pacific Biosciences of California, Inc. (NASDAQ:PACB) shareholders today, when the analysts downgraded their forecasts for this year. Revenue estimates were cut sharply as the analysts signalled a weaker outlook - perhaps a sign that investors should temper their expectations as well.
Following the latest downgrade, Pacific Biosciences of California's twelve analysts currently expect revenues in 2024 to be US$197m, approximately in line with the last 12 months. Losses are forecast to narrow 8.2% to US$1.03 per share. Yet before this consensus update, the analysts had been forecasting revenues of US$239m and losses of US$1.04 per share in 2024. So there's been quite a change-up of views after the recent consensus updates, with the analysts making a serious cut to their revenue forecasts while also making no real change to the loss per share numbers.
Check out our latest analysis for Pacific Biosciences of California
the analysts have cut their price target 34% to US$6.23 per share, signalling that the declining revenue and ongoing losses are contributing to the lower valuation.
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. These estimates imply that sales are expected to slow, with a forecast annualised revenue decline of 1.9% by the end of 2024. This indicates a significant reduction from annual growth of 18% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 6.0% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Pacific Biosciences of California is expected to lag the wider industry.
The Bottom Line
Regrettably, they also downgraded their revenue estimates, and the latest forecasts imply the business will grow sales slower than the wider market. The consensus price target fell measurably, with analysts seemingly not reassured by recent business developments, leading to a lower estimate of Pacific Biosciences of California's future valuation. Given the stark change in sentiment, we'd understand if investors became more cautious on Pacific Biosciences of California after today.
After a downgrade like this, it's pretty clear that previous forecasts were too optimistic. What's more, we've spotted several possible issues with Pacific Biosciences of California's business, like recent substantial insider selling. For more information, you can click here to discover this and the 3 other risks we've identified.
Another way to search for interesting companies that could be reaching an inflection point is to track whether management are buying or selling, with our free list of growing companies that insiders are buying.
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.
