It's been a pretty great week for Rapid Micro Biosystems, Inc. (NASDAQ:RPID) shareholders, with its shares surging 16% to US$0.79 in the week since its latest quarterly results. Rapid Micro Biosystems beat revenue forecasts by a solid 10%, hitting US$6.6m. Statutory losses also increased, with a per-share loss of US$0.29, slightly larger than what the analysts wereexpecting. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

Following the latest results, Rapid Micro Biosystems' three analysts are now forecasting revenues of US$27.3m in 2024. This would be a decent 10% improvement in revenue compared to the last 12 months. The loss per share is expected to ameliorate slightly, reducing to US$1.08. Before this latest report, the consensus had been expecting revenues of US$27.1m and US$1.09 per share in losses.

The consensus price target rose 36% to US$8.00, with the analysts increasing their valuations as the business executes in line with forecasts.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. The analysts are definitely expecting Rapid Micro Biosystems' growth to accelerate, with the forecast 22% annualised growth to the end of 2024 ranking favourably alongside historical growth of 0.8% per annum over the past three years. Compare this with other companies in the same industry, which are forecast to grow their revenue 6.6% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Rapid Micro Biosystems to grow faster than the wider industry.

The Bottom Line

The most obvious conclusion is that the analysts made no changes to their forecasts for a loss next year. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Rapid Micro Biosystems going out to 2026, and you can see them free on our platform here.

You still need to take note of risks, for example - Rapid Micro Biosystems has 2 warning signs we think you should be aware of.

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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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