As you might know, Cytosorbents Corporation (NASDAQ:CTSO) just kicked off its latest quarterly results with some very strong numbers. Results overall were solid, with revenues arriving 9.9% better than analyst forecasts at US$11m. Higher revenues also resulted in substantially lower statutory losses which, at US$0.02 per share, were 9.9% smaller than the analysts expected. 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. We’ve gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
Taking into account the latest results, the consensus forecast from Cytosorbents’ six analysts is for revenues of US$50.0m in 2021, which would reflect a sizeable 37% improvement in sales compared to the last 12 months. Losses are predicted to fall substantially, shrinking 54% to US$0.14. Before this earnings announcement, the analysts had been modelling revenues of US$50.3m and losses of US$0.19 per share in 2021. Although the revenue estimates have not really changed Cytosorbents’future looks a little different to the past, with a the loss per share forecasts in particular.
There’s been no major changes to the consensus price target of US$14.57, suggesting that reduced loss estimates are not enough to have a long-term positive impact on the stock’s valuation. The consensus price target is just an average of individual analyst targets, so – it could be handy to see how wide the range of underlying estimates is. The most optimistic Cytosorbents analyst has a price target of US$16.00 per share, while the most pessimistic values it at US$13.00. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Cytosorbents is an easy business to forecast or the the analysts are all using similar assumptions.
Of course, another way to look at these forecasts is to place them into context against the industry itself. We can infer from the latest estimates that forecasts expect a continuation of Cytosorbents’historical trends, as next year’s 37% revenue growth is roughly in line with 34% annual revenue growth over the past five years. Compare this with the wider industry, which analyst estimates (in aggregate) suggest will see revenues grow 10.0% next year. So it’s pretty clear that Cytosorbents is forecast to grow substantially faster than its industry.
The Bottom Line
The most important thing to take away is that the analysts reconfirmed their loss per share estimates for next year. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.
Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year’s earnings. We have estimates – from multiple Cytosorbents analysts – going out to 2024, and you can see them free on our platform here.
Plus, you should also learn about the 1 warning sign we’ve spotted with Cytosorbents .
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.