Opsens Inc. (TSE:OPS) shareholders are probably feeling a little disappointed, since its shares fell 7.1% to CA$0.92 in the week after its latest annual results. It looks like the results were pretty good overall. While revenues of CA$29m were in line with analyst predictions, statutory losses were much smaller than expected, with Opsens losing CA$0.03 per share. 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. 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 Opsens
Taking into account the latest results, the consensus forecast from Opsens' four analysts is for revenues of CA$38.5m in 2021, which would reflect a sizeable 31% improvement in sales compared to the last 12 months. Opsens is also expected to turn profitable, with statutory earnings of CA$0.005 per share. In the lead-up to this report, the analysts had been modelling revenues of CA$40.0m and earnings per share (EPS) of CA$0.013 in 2021. From this we can that sentiment has definitely become more bearish after the latest results, leading to lower revenue forecasts and a large cut to earnings per share estimates.
What's most unexpected is that the consensus price target rose 7.0% to CA$1.90, strongly implying the downgrade to forecasts is not expected to be more than a temporary blip. 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 Opsens, with the most bullish analyst valuing it at CA$3.00 and the most bearish at CA$1.50 per share. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.
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 can infer from the latest estimates that forecasts expect a continuation of Opsens'historical trends, as next year's 31% revenue growth is roughly in line with 30% annual revenue 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 46% per year. So although Opsens is expected to maintain its revenue growth rate, it's forecast to grow slower than the wider industry.