Earnings Update: Twist Bioscience Corporation (NASDAQ:TWST) Just Reported Its First-Quarter Results And Analysts Are Updating Their Forecasts

Simply Wall St.
08 Feb

Twist Bioscience Corporation (NASDAQ:TWST) investors will be delighted, with the company turning in some strong numbers with its latest results. Revenues beat expectations coming in atUS$89m, ahead of estimates by 2.0%. Statutory losses were somewhat smaller thanthe analysts expected, coming in at US$0.53 per share. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

Check out our latest analysis for Twist Bioscience

NasdaqGS:TWST Earnings and Revenue Growth February 7th 2025

Taking into account the latest results, the consensus forecast from Twist Bioscience's eleven analysts is for revenues of US$376.0m in 2025. This reflects a solid 14% improvement in revenue compared to the last 12 months. Losses are predicted to fall substantially, shrinking 39% to US$2.02. Yet prior to the latest earnings, the analysts had been forecasting revenues of US$373.1m and losses of US$2.26 per share in 2025. Although the revenue estimates have not really changed Twist Bioscience'sfuture looks a little different to the past, with a favorable reduction in the loss per share forecasts in particular.

There's been no major changes to the consensus price target of US$54.59, suggesting that reduced loss estimates are not enough to have a long-term positive impact on the stock's valuation. 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. The most optimistic Twist Bioscience analyst has a price target of US$62.00 per share, while the most pessimistic values it at US$40.00. 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.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We would highlight that Twist Bioscience's revenue growth is expected to slow, with the forecast 19% annualised growth rate until the end of 2025 being well below the historical 30% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 21% annually. Factoring in the forecast slowdown in growth, it looks like Twist Bioscience is forecast to grow at about the same rate as 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. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. The consensus price target held steady at US$54.59, 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 Twist Bioscience going out to 2027, 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 Twist Bioscience , and understanding them should be part of your investment process.

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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.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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