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Shareholders in Biocept, Inc. (NASDAQ:BIOC) may be thrilled to learn that the covering analyst has just delivered a major upgrade to their near-term forecasts. Consensus estimates suggest investors could expect greatly increased statutory revenues and earnings per share, with the analyst modelling a real improvement in business performance.
Following the upgrade, the most recent consensus for Biocept from its solo analyst is for revenues of US$58m in 2021 which, if met, would be a reasonable 5.3% increase on its sales over the past 12 months. The loss per share is anticipated to greatly reduce in the near future, narrowing 51% to US$0.08. Yet before this consensus update, the analyst had been forecasting revenues of US$38m and losses of US$0.82 per share in 2021. We can see there's definitely been a change in sentiment in this update, with the analyst administering a sizeable upgrade to this year's revenue estimates, while at the same time reducing their loss estimates.
Check out our latest analysis for Biocept
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. It's pretty clear that there is an expectation that Biocept's revenue growth will slow down substantially, with revenues to the end of 2021 expected to display 11% growth on an annualised basis. This is compared to a historical growth rate of 61% over the past five years. Compare this to the 633 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 10% per year. So it's pretty clear that, while Biocept's revenue growth is expected to slow, it's expected to grow roughly in line with the industry.
The Bottom Line
The highlight for us was that the consensus reduced its estimated losses this year, perhaps suggesting Biocept is moving incrementally towards profitability. They also upgraded their revenue forecasts, although the latest estimates suggest that Biocept will grow in line with the overall market. With a serious upgrade to expectations, it might be time to take another look at Biocept.
Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. We have analyst estimates for Biocept going out as far as 2023, and you can see them free on our platform here.
Another way to search for interesting companies that could be reaching an inflection point is to track whether management are buying or selling, with our free list of growing companies that insiders are buying.
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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