Yahoo Finance Seer, Inc. (NASDAQ:SEER) Just Reported, And Analysts Assigned A US$7.00 Price Target
Shareholders of Seer, Inc. (NASDAQ:SEER) will be pleased this week, given that the stock price is up 18% to US$1.82 following its latest full-year results. The results look positive overall; while revenues of US$17m were in line with analyst predictions, statutory losses were 7.1% smaller than expected, with Seer losing US$1.35 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.
See our latest analysis for Seer
Taking into account the latest results, the consensus forecast from Seer's three analysts is for revenues of US$19.3m in 2024. This reflects a meaningful 16% improvement in revenue compared to the last 12 months. Losses are forecast to narrow 4.9% to US$1.28 per share. Before this earnings announcement, the analysts had been modelling revenues of US$19.7m and losses of US$1.37 per share in 2024. It looks like there's been a modest increase in sentiment in the recent updates, with the analysts becoming a bit more optimistic in their predictions for losses per share, even though the revenue numbers were unchanged.
The consensus price target fell 6.7% to US$7.00despite the forecast for smaller losses next year. It looks like the ongoing lack of profitability is starting to weigh on valuations.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Seer's past performance and to peers in the same industry. It's pretty clear that there is an expectation that Seer's revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 16% growth on an annualised basis. This is compared to a historical growth rate of 57% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 6.1% annually. Even after the forecast slowdown in growth, it seems obvious that Seer is also expected to grow faster than the wider industry.
The Bottom Line
The most obvious conclusion is that the analysts made no changes to their forecasts for a loss next year. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Seer going out to 2026, and you can see them free on our platform here..
That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 2 warning signs with Seer , and understanding these should be part of your investment process.
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.
