There has been a noticeable change in appetite for CollPlant Biotechnologies Ltd. (NASDAQ: CLGN) in the week since its second quarter report, with the stock falling 11% to US $ 16.72. Income was 244% higher than analysts’ model forecast, at US $ 686,000, although statutory losses were 11% larger than expected, at US $ 0.30 per share. Following the result, the analyst updated his profit model, and it would be good to know if he thinks there has been a significant change in the outlook for the company, or if business continues as d ‘habit. With that in mind, we’ve put together the latest statutory forecast to see what the analyst expects for next year.
NasdaqGM: CLGN Profits and Revenue Growth August 22, 2021
Based on the latest results, the current consensus, from the only analyst covering CollPlant Biotechnologies, expects sales of US $ 15.8 million in 2021, which would reflect a worrying 21% drop in sales of CollPlant Biotechnologies at over the past 12 months. Statutory earnings per share are expected to reach 67% to reach US $ 0.20 during the same period. Yet before the latest results, the analyst had forecast revenues of US $ 15.3 million and earnings per share (EPS) of US $ 0.23 in 2021. While next year’s revenue estimates have increased, there has also been a real reduction in BPA expectations, suggesting the consensus has a somewhat mixed view of these results.
There has been no major change to the target price of US $ 26.13, which suggests that the impact of higher sales forecasts and lower profits will not result in a significant change in the price. business valuation.
Looking at the big picture now, one of the ways we can understand these forecasts is to see how they stack up against both past performance and industry growth estimates. These estimates imply that sales are expected to slow, with a forecast of a 37% annualized revenue decline by the end of 2021. This indicates a significant reduction from the 69% annual growth over the past five years. In contrast, our data suggests that other companies (with analyst coverage) in the same industry are expected to see their revenues grow by 10% per year for the foreseeable future. It is quite clear that the revenues of CollPlant Biotechnologies are expected to perform significantly lower than that of the industry as a whole.
The bottom line
The most important thing to remember is that the analyst lowered his earnings per share estimate, showing that there was a marked drop in sentiment following these results. They have also improved their revenue estimates for next year, although sales are expected to grow more slowly than the industry as a whole. There has been no real change to the consensus price target, suggesting that the intrinsic value of the company has not undergone any major changes with the latest estimates.
With that in mind, we wouldn’t be too quick to draw a conclusion about CollPlant Biotechnologies. Long-term earnings power is much more important than next year’s earnings. We have analyst estimates for CollPlant Biotechnologies up to 2023, and you can view them for free on our platform here.
That said, we still have to consider the ever-present specter of investment risk. We have identified 3 warning signs with CollPlant Biotechnologies (at least 2 of which are of concern), and understanding them should be part of your investment process.
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