Yahoo Finance Analysts Are Upgrading Exscientia plc (NASDAQ:EXAI) After Its Latest Results
Shareholders might have noticed that Exscientia plc (NASDAQ:EXAI) filed its quarterly result this time last week. The early response was not positive, with shares down 9.8% to US$4.69 in the past week. Revenues fell badly short of expectations, with revenue of US$5.3m, missing analyst estimates by 34%. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
See our latest analysis for Exscientia
Taking into account the latest results, the current consensus from Exscientia's three analysts is for revenues of US$73.5m in 2024. This would reflect a substantial 197% increase on its revenue over the past 12 months. Losses are supposed to decline, shrinking 17% from last year to US$1.07. Before this latest report, the consensus had been expecting revenues of US$57.9m and US$1.39 per share in losses. So there's been quite a change-up of views after the recent consensus updates, with the analysts making a sizeable increase to their revenue forecasts while also reducing the estimated loss as the business grows towards breakeven.
Despite these upgrades,the analysts have not made any major changes to their price target of US$8.38, implying that their latest estimates don't have a long term impact on what they think the stock is worth. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values Exscientia at US$10.01 per share, while the most bearish prices it at US$7.15. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.
Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. It's clear from the latest estimates that Exscientia's rate of growth is expected to accelerate meaningfully, with the forecast 3x annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 1.6% p.a. over the past three years. Compare this with other companies in the same industry, which are forecast to grow their revenue 18% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Exscientia is expected to grow much 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, they also upgraded their revenue estimates, and are forecasting them to grow faster than the wider industry. The consensus price target held steady at US$8.38, with the latest estimates not enough to have an impact on their price targets.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Exscientia analysts - going out to 2026, and you can see them free on our platform here.
And what about risks? Every company has them, and we've spotted 3 warning signs for Exscientia you should know about.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.
