BioLife Solutions, Inc. (NASDAQ:BLFS) Just Reported And Analysts Have Been Cutting Their Estimates

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BioLife Solutions, Inc. (NASDAQ:BLFS) just released its third-quarter report and things are looking bullish. The results were impressive, with revenues of US$31m exceeding analyst forecasts by 20%, and statutory losses of US$0.04 were likewise much smaller than the analysts had forecast. 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 BioLife Solutions

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NasdaqCM:BLFS Earnings and Revenue Growth November 15th 2024

Taking into account the latest results, the nine analysts covering BioLife Solutions provided consensus estimates of US$101.9m revenue in 2025, which would reflect a concerning 31% decline over the past 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 76% to US$0.26. Before this earnings announcement, the analysts had been modelling revenues of US$119.3m and losses of US$0.26 per share in 2025. So there's definitely been a change in sentiment in this update, with the analysts administering a substantial haircut to next year's revenue estimates, while at the same time holding losses per share steady.

The consensus price target was broadly unchanged at US$29.30, implying that the business is performing roughly in line with expectations, despite a downwards adjustment to forecast revenue next year. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. Currently, the most bullish analyst values BioLife Solutions at US$32.00 per share, while the most bearish prices it at US$26.00. This is a very narrow spread of estimates, implying either that BioLife Solutions is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

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 revenue is expected to slow, with a forecast annualised decline of 25% by the end of 2025. This indicates a significant reduction from annual growth of 29% 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 6.5% annually for the foreseeable future. It's pretty clear that BioLife Solutions' revenues are expected to perform substantially worse than the wider industry.