Berkshire Grey, Inc. (NASDAQ:BGRY) investors will be delighted, with the company turning in some strong numbers with its latest results. The results were impressive, with revenues of US$23m exceeding analyst forecasts by 172%, and statutory losses of US$0.12 were likewise much smaller than the analysts had forecast. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

Check out our latest analysis for Berkshire Grey

Following the latest results, Berkshire Grey's four analysts are now forecasting revenues of US$75.8m in 2022. This would be a satisfactory 6.3% improvement in sales compared to the last 12 months. The loss per share is expected to ameliorate slightly, reducing to US$0.51. Yet prior to the latest earnings, the analysts had been forecasting revenues of US$89.1m and losses of US$0.58 per share in 2022. We can see there's definitely been a change in sentiment in this update, with the analysts administering a meaningful downgrade to next year's revenue estimates, while at the same time reducing their loss estimates.

The consensus price target was broadly unchanged at US$5.05, implying that the business is performing roughly in line with expectations, despite adjustments to both revenue and earnings estimates. 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. There are some variant perceptions on Berkshire Grey, with the most bullish analyst valuing it at US$7.00 and the most bearish at US$2.18 per share. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Berkshire Grey's past performance and to peers in the same industry. We would highlight that Berkshire Grey's revenue growth is expected to slow, with the forecast 13% annualised growth rate until the end of 2022 being well below the historical 400% growth over the last year. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 5.7% annually. So it's pretty clear that, while Berkshire Grey's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

The Bottom Line

The most obvious conclusion is that the analysts made no changes to their forecasts for a loss next year. Regrettably, they also downgraded their revenue estimates, but the latest forecasts still imply the business will grow faster than the wider industry. Even so, long term profitability is more important for the value creation process. The consensus price target held steady at US$5.05, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for Berkshire Grey going out to 2024, and you can see them free on our platform here.

Plus, you should also learn about the 4 warning signs we've spotted with Berkshire Grey (including 1 which doesn't sit too well with us) .

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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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