Fluidigm Corporation (NASDAQ:FLDM) just released its latest quarterly results and things are looking bullish. The results were impressive, with revenues of US$40m exceeding analyst forecasts by 23%, and statutory losses of US$0.08 were likewise much smaller than the analysts had forecast. 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. Readers will be glad to know we’ve aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Fluidigm after the latest results.
Taking into account the latest results, the most recent consensus for Fluidigm from three analysts is for revenues of US$221.2m in 2021 which, if met, would be a sizeable 96% increase on its sales over the past 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 20% to US$0.62. Before this earnings announcement, the analysts had been modelling revenues of US$197.1m and losses of US$0.51 per share in 2021. So there’s been quite a change-up of views after the recent consensus updates, with the analysts significantly increasing their revenue forecasts while also expecting losses per share to increase. It looks like the revenue growth will not be achieved without incremental costs.
There was no major change to the consensus price target of US$14.67, with growing revenues seemingly enough to offset the concern of growing losses. 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. Currently, the most bullish analyst values Fluidigm at US$15.00 per share, while the most bearish prices it at US$14.00. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Fluidigm’s past performance and to peers in the same industry. The analysts are definitely expecting Fluidigm’s growth to accelerate, with the forecast 96% growth ranking favourably alongside historical growth of 0.8% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 9.0% next year. Factoring in the forecast acceleration in revenue, it’s pretty clear that Fluidigm is expected to grow much faster than its industry.
The Bottom Line
The most important thing to take away is that the analysts increased their loss per share estimates for next year. Happily, they also upgraded their revenue estimates, and are forecasting revenues 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.
With that in mind, we wouldn’t be too quick to come to a conclusion on Fluidigm. Long-term earnings power is much more important than next year’s profits. At Simply Wall St, we have a full range of analyst estimates for Fluidigm going out to 2022, and you can see them free on our platform here..
Don’t forget that there may still be risks. For instance, we’ve identified 3 warning signs for Fluidigm that you should be aware 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.