Fulgent Genetics, Inc. (NASDAQ:FLGT) just released its latest second-quarter results and things are looking bullish. Results overall were solid, with revenues arriving 2.8% better than analyst forecasts at US$71m. Higher revenues also resulted in substantially lower statutory losses which, at US$0.29 per share, were 2.8% 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 three analysts covering Fulgent Genetics provided consensus estimates of US$280.3m revenue in 2024, which would reflect a perceptible 3.6% decline over the past 12 months. Losses are predicted to fall substantially, shrinking 62% to US$2.06. Yet prior to the latest earnings, the analysts had been forecasting revenues of US$280.2m and losses of US$2.31 per share in 2024. While the revenue estimates were largely unchanged, sentiment seems to have improved, with the analysts upgrading their numbers and making a favorable reduction in losses per share in particular.

There's been no major changes to the consensus price target of US$27.33, suggesting that reduced loss estimates are not enough to have a long-term positive impact on the stock's valuation. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Fulgent Genetics at US$30.00 per share, while the most bearish prices it at US$25.00. 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 Fulgent Genetics' past performance and to peers in the same industry. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 7.1% by the end of 2024. This indicates a significant reduction from annual growth of 14% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 6.8% annually for the foreseeable future. It's pretty clear that Fulgent Genetics' revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The most important thing to take away is that the analysts reconfirmed their loss per share estimates for next year. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target held steady at US$27.33, 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 Fulgent Genetics analysts - going out to 2026, and you can see them free on our platform here.

We also provide an overview of the Fulgent Genetics Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, here.

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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.

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