It's been a mediocre week for Standard BioTools Inc. (NASDAQ:LAB) shareholders, with the stock dropping 18% to US$1.07 in the week since its latest yearly results. The statutory results were not great - while revenues of US$174m were in line with expectations,Standard BioTools lost US$0.52 a share in the process. 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 collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
Check out our latest analysis for Standard BioTools
Following the recent earnings report, the consensus from three analysts covering Standard BioTools is for revenues of US$169.2m in 2025. This implies a discernible 3.0% decline in revenue compared to the last 12 months. Losses are predicted to fall substantially, shrinking 48% to US$0.26. Before this latest report, the consensus had been expecting revenues of US$187.9m and US$0.22 per share in losses. So it's pretty clear the analysts have mixed opinions on Standard BioTools after this update; revenues were downgraded and per-share losses expected to increase.
The consensus price target fell 23% to US$2.38, with the analysts clearly concerned about the company following the weaker revenue and earnings outlook. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic Standard BioTools analyst has a price target of US$2.50 per share, while the most pessimistic values it at US$2.25. This is a very narrow spread of estimates, implying either that Standard BioTools is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.
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 revenue is expected to reverse, with a forecast 3.0% annualised decline to the end of 2025. That is a notable change from historical growth of 1.6% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 5.9% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Standard BioTools is expected to lag the wider industry.
The most important thing to note is the forecast of increased losses next year, suggesting all may not be well at Standard BioTools. Unfortunately, they also downgraded their revenue estimates, and our data indicates underperformance compared to the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Standard BioTools' future valuation.
With that in mind, we wouldn't be too quick to come to a conclusion on Standard BioTools. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Standard BioTools analysts - going out to 2027, and you can see them free on our platform here.
Even so, be aware that Standard BioTools is showing 3 warning signs in our investment analysis , you should know about...
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