In This Article:
Shareholders of Exact Sciences Corporation (NASDAQ:EXAS) will be pleased this week, given that the stock price is up 13% to US$51.55 following its latest quarterly results. The results don't look great, especially considering that statutory losses grew 42% toUS$0.54 per share. Revenues of US$707m did beat expectations by 2.6%, but it looks like a bit of a cold comfort. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
We check all companies for important risks. See what we found for Exact Sciences in our free report.
Following the latest results, Exact Sciences' 26 analysts are now forecasting revenues of US$3.09b in 2025. This would be a decent 9.4% improvement in revenue compared to the last 12 months. Losses are predicted to fall substantially, shrinking 91% to US$0.51. Before this earnings announcement, the analysts had been modelling revenues of US$3.06b and losses of US$0.40 per share in 2025. While this year's revenue estimates held steady, there was also a sizeable expansion in loss per share expectations, suggesting the consensus has a bit of a mixed view on the stock.
Check out our latest analysis for Exact Sciences
As a result, there was no major change to the consensus price target of US$68.81, with the analysts implicitly confirming that the business looks to be performing in line with expectations, despite higher forecast losses. 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. There are some variant perceptions on Exact Sciences, with the most bullish analyst valuing it at US$90.00 and the most bearish at US$54.00 per share. 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.
Of course, another way to look at these forecasts is to place them into context against the industry itself. It's pretty clear that there is an expectation that Exact Sciences' revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 13% growth on an annualised basis. This is compared to a historical growth rate of 17% 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 18% per year. Factoring in the forecast slowdown in growth, it seems obvious that Exact Sciences is also expected to grow slower than other industry participants.