Earnings Update: Here's Why Analysts Just Lifted Their Quanterix Corporation (NASDAQ:QTRX) Price Target To US$3.17
As you might know, Quanterix Corporation (NASDAQ:QTRX) recently reported its third-quarter numbers. Revenues were a bright spot, with US$35m in revenue arriving 3.3% ahead of expectations, although statutory earnings didn't fare nearly so well, recording a loss of US$0.46, some 9.5% below consensus predictions. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
Taking into account the latest results, the consensus forecast from Quanterix's three analysts is for revenues of US$156.3m in 2027. This reflects a reasonable 5.5% improvement in revenue compared to the last 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 45% to US$1.29. Yet prior to the latest earnings, the analysts had been forecasting revenues of US$157.6m and losses of US$1.08 per share in 2027. While next year's revenue estimates held steady, there was also a notable increase in loss per share expectations, suggesting the consensus has a bit of a mixed view on the stock.
Check out our latest analysis for Quanterix
Despite expectations of heavier losses next year,the analysts have lifted their price target 5.6% to US$3.17, perhaps implying these losses are not expected to be recurring over the long term. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on Quanterix, with the most bullish analyst valuing it at US$3.50 and the most bearish at US$3.00 per share. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Quanterix's past performance and to peers in the same industry. We would highlight that Quanterix's revenue growth is expected to slow, with the forecast 4.4% annualised growth rate until the end of 2027 being well below the historical 7.2% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 6.9% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Quanterix.
The Bottom Line
The most important thing to note is the forecast of increased losses next year, suggesting all may not be well at Quanterix. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.
With that in mind, we wouldn't be too quick to come to a conclusion on Quanterix. Long-term earnings power is much more important than next year's profits. We have forecasts for Quanterix going out to 2028, and you can see them free on our platform here.
Plus, you should also learn about the 2 warning signs we've spotted with Quanterix .
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