A week ago, Misonix, Inc. (NASDAQ:MSON) came out with a strong set of quarterly numbers that could potentially lead to a re-rate of the stock. Results overall were credible, with revenues arriving 2.7% better than analyst forecasts at US$18m. Higher revenues also resulted in lower statutory losses, which were US$0.22 per share, some 2.7% smaller than the analysts expected. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
Taking into account the latest results, the current consensus from Misonix's three analysts is for revenues of US$85.2m in 2022, which would reflect a huge 25% increase on its sales over the past 12 months. Losses are predicted to fall substantially, shrinking 35% to US$0.70. Before this latest report, the consensus had been expecting revenues of US$86.0m and US$0.67 per share in losses. Overall it looks as though the analysts were a bit mixed on the latest consensus updates. Although sales forecasts held steady, the consensus also made a pronounced increase to its losses per share forecasts.
The consensus price target held steady at US$23.00, seemingly implying that the higher forecast losses are not expected to have a long term impact on the company's valuation.
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. We can infer from the latest estimates that forecasts expect a continuation of Misonix'shistorical trends, as the 20% annualised revenue growth to the end of 2022 is roughly in line with the 24% annual revenue growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 8.0% annually. So although Misonix is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.
The Bottom Line
The most important thing to note is the forecast of increased losses next year, suggesting all may not be well at Misonix. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at US$23.00, with the latest estimates not enough to have an impact on their price targets.
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 Misonix going out to 2023, 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 Misonix , and understanding them should be part of your investment process.
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.
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