Yahoo Finance Yield10 Bioscience, Inc. (NASDAQ:YTEN) Just Reported, And Analysts Assigned A US$13.33 Price Target
Yield10 Bioscience, Inc. (NASDAQ:YTEN) defied analyst predictions to release its first-quarter results, which were ahead of market expectations. Yield10 Bioscience beat expectations with revenues of US$179k arriving 2.1% ahead of forecasts. The company also reported a statutory loss of US$2.12, 7.4% smaller than was expected. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
Check out our latest analysis for Yield10 Bioscience
Taking into account the latest results, the most recent consensus for Yield10 Bioscience from three analysts is for revenues of US$962.7k in 2020 which, if met, would be a meaningful 12% increase on its sales over the past 12 months. Losses are predicted to fall substantially, shrinking 71% to US$5.75. Yet prior to the latest earnings, the analysts had been forecasting revenues of US$1.03m and losses of US$6.55 per share in 2020. While the revenue estimates fell, sentiment seems to have improved, with the analysts making a losses per share in particular.
The analysts have cut their price target 58% to US$13.33 per share, suggesting that the declining revenue was a more crucial indicator than the forecast reduction in losses. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic Yield10 Bioscience analyst has a price target of US$18.00 per share, while the most pessimistic values it at US$10.00. 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.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Yield10 Bioscience's past performance and to peers in the same industry. One thing stands out from these estimates, which is that Yield10 Bioscience is forecast to grow faster in the future than it has in the past, with revenues expected to grow 12%. If achieved, this would be a much better result than the 27% annual decline 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 revenue grow 24% per year. Although Yield10 Bioscience's revenues are expected to improve, it seems that the analysts are still bearish on the business, forecasting it to grow slower 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. Unfortunately, they also downgraded their revenue estimates, and our data indicates revenues are expected to perform worse than the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. Even so, earnings per share are more important to the intrinsic value of the business. 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.
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 Yield10 Bioscience going out to 2022, and you can see them free on our platform here..
We don't want to rain on the parade too much, but we did also find 5 warning signs for Yield10 Bioscience (2 are a bit unpleasant!) that you need to be mindful of.
Love or hate this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com.
This article by Simply Wall St is general in nature. 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. Thank you for reading.
