Matinas BioPharma Holdings, Inc. (NYSEMKT:MTNB) Reported Earnings Last Week And Analysts Are Already Upgrading Their Estimates
Matinas BioPharma Holdings, Inc. (NYSEMKT:MTNB) defied analyst predictions to release its third-quarter results, which were ahead of market expectations. Overall results were decent, with revenues of US$96k beating estimates by369%. Statutory losses were subsequently less thanthe analysts had expected, at US$0.03 per share. 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. We’ve gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
Check out our latest analysis for Matinas BioPharma Holdings
Taking into account the latest results, the current consensus from Matinas BioPharma Holdings’ five analysts is for revenues of US$1.24m in 2021, which would reflect a huge 1,194% increase on its sales over the past 12 months. Losses are forecast to balloon 39% to US$0.17 per share. Yet prior to the latest earnings, the analysts had been forecasting revenues of US$1.04m and losses of US$0.17 per share in 2021. So there’s been quite a change-up of views after the recent consensus updates, withthe analysts noticeably increasing their revenue forecasts while also expecting losses per share to hold steady.
There were no major changes to the US$3.38consensus price target despite the higher revenue estimates, with the analysts seeming to believe that ongoing losses have a larger impact on the valuation than growing sales. 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. There are some variant perceptions on Matinas BioPharma Holdings, with the most bullish analyst valuing it at US$5.00 and the most bearish at US$1.80 per share. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.
Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. One thing stands out from these estimates, which is that Matinas BioPharma Holdings is forecast to grow faster in the future than it has in the past, with revenues expected to grow manyfold. If achieved, this would be a much better result than the 9.1% annual decline over the past five years. Compare this against analyst estimates for the wider industry, which suggest that (in aggregate) industry revenues are expected to grow 21% next year. So it looks like Matinas BioPharma Holdings is expected to grow faster than its competitors, at least for a while.
The Bottom Line
The most obvious conclusion is that the analysts made no changes to their forecasts for a loss next year. Happily, they also upgraded their revenue estimates, and are forecasting revenues to grow faster than the wider industry. The consensus price target held steady at US$3.38, with the latest estimates not enough to have an impact on their price targets.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates – from multiple Matinas BioPharma Holdings analysts – going out to 2024, and you can see them free on our platform here.
We don’t want to rain on the parade too much, but we did also find 3 warning signs for Matinas BioPharma Holdings (1 is a bit concerning!) that you need to be mindful of.
This article by Simply Wall St is general in nature. 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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