Berkeley Lights, Inc. (NASDAQ:BLI) Just Reported First-Quarter Earnings And Analysts Are Lifting Their Estimates
One of the biggest stories of last week was how Berkeley Lights, Inc. (NASDAQ:BLI) shares plunged 24% in the week since its latest first-quarter results, closing yesterday at US$36.40. Berkeley Lights beat revenue forecasts by a solid 11%, hitting US$19m. Statutory losses also increased, with a per-share loss of US$0.24, slightly larger than what the analysts wereexpecting. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
View our latest analysis for Berkeley Lights
Taking into account the latest results, the consensus forecast from Berkeley Lights' six analysts is for revenues of US$92.8m in 2021, which would reflect a substantial 34% improvement in sales compared to the last 12 months. Losses are expected to be contained, narrowing 16% from last year to US$0.89. Before this latest report, the consensus had been expecting revenues of US$86.4m and US$0.88 per share in losses.
There were no major changes to the US$93.75consensus price target despite the higher revenue estimates, with the analysts seeming to believe that ongoing losses have a larger impact on the valuation than growing sales. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Berkeley Lights at US$105 per share, while the most bearish prices it at US$73.00. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Berkeley Lights' past performance and to peers in the same industry. The analysts are definitely expecting Berkeley Lights' growth to accelerate, with the forecast 48% annualised growth to the end of 2021 ranking favourably alongside historical growth of 20% per annum over the past year. Compare this with other companies in the same industry, which are forecast to grow their revenue 7.2% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Berkeley Lights to grow faster 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. Happily, they also upgraded their revenue estimates, and are forecasting revenues to grow faster than the wider industry. The consensus price target held steady at US$93.75, with the latest estimates not enough to have an impact on their price targets.
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. We have forecasts for Berkeley Lights going out to 2025, and you can see them free on our platform here.
You still need to take note of risks, for example - Berkeley Lights has 3 warning signs we think you should be aware of.
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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