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Investors in Aroa Biosurgery Limited (ASX:ARX) had a good week, as its shares rose 3.1% to close at AU$0.49 following the release of its yearly results. Revenues were in line with expectations, at NZ$69m, while statutory losses ballooned to NZ$0.031 per share. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. 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 Aroa Biosurgery
Taking into account the latest results, the current consensus from Aroa Biosurgery's five analysts is for revenues of NZ$85.7m in 2025. This would reflect a huge 24% increase on its revenue over the past 12 months. Per-share statutory losses are expected to explode, reaching NZ$0.00063 per share. Yet prior to the latest earnings, the analysts had been anticipated revenues of NZ$87.1m and earnings per share (EPS) of NZ$0.0068 in 2025. So despite reconfirming their revenue estimates, the analysts are now forecasting a loss instead of a profit, which looks like a definite drop in sentiment following the latest results.
As a result, there was no major change to the consensus price target of AU$0.99, with the analysts implicitly confirming that the business looks to be performing in line with expectations, despite higher forecast losses. 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. Currently, the most bullish analyst values Aroa Biosurgery at AU$1.05 per share, while the most bearish prices it at AU$0.90. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.
Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. The period to the end of 2025 brings more of the same, according to the analysts, with revenue forecast to display 24% growth on an annualised basis. That is in line with its 29% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 8.4% per year. So although Aroa Biosurgery is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.