Yahoo Finance US$4.17: That's What Analysts Think OptiNose, Inc. (NASDAQ:OPTN) Is Worth After Its Latest Results
Shareholders might have noticed that OptiNose, Inc. (NASDAQ:OPTN) filed its quarterly result this time last week. The early response was not positive, with shares down 2.5% to US$1.95 in the past week. OptiNose beat revenue forecasts by a solid 16%, hitting US$12m. Statutory losses also blew out, with the loss per share reaching US$0.17, some 21% bigger than the analysts expected. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
See our latest analysis for OptiNose
Taking into account the latest results, the three analysts covering OptiNose provided consensus estimates of US$64.7m revenue in 2023, which would reflect a considerable 12% decline on its sales over the past 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 39% to US$0.37. Before this latest report, the consensus had been expecting revenues of US$64.6m and US$0.38 per share in losses. So there seems to have been a moderate uplift in analyst sentiment with the latest consensus release, given the upgrade to loss per share forecasts for this year.
Even with the lower forecast losses, the analysts lowered their valuations, with the average price target falling 17% to US$4.17. It looks likethe analysts have become less optimistic about the overall business. 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. The most optimistic OptiNose analyst has a price target of US$5.00 per share, while the most pessimistic values it at US$3.50. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.
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. These estimates imply that sales are expected to slow, with a forecast annualised revenue decline of 15% by the end of 2023. This indicates a significant reduction from annual growth of 41% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 7.0% per year. It's pretty clear that OptiNose's revenues are expected to perform substantially worse than the wider industry.
The Bottom Line
The most important thing to take away is that the analysts reconfirmed their loss per share estimates for next year. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting sales are tracking in line with expectations - although our data does suggest that OptiNose's revenues are expected to perform worse than the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of OptiNose's future valuation.
Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for OptiNose going out to 2025, and you can see them free on our platform here..
And what about risks? Every company has them, and we've spotted 2 warning signs for OptiNose (of which 1 is a bit unpleasant!) you should know about.
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.
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