It’s been a good week for Opus Genetics, Inc. (NASDAQ:IRD) shareholders, because the company has just released its latest quarterly results, and the shares gained 7.7% to US$1.02. Revenues of US$4.4m crushed expectations, although expenses increased commensurately, with statutory losses hitting US$0.24 per share, -17% above what the analysts expected. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
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Taking into account the latest results, the current consensus from Opus Genetics’ three analysts is for revenues of US$15.4m in 2025. This would reflect a decent 13% increase on its revenue over the past 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 39% to US$0.78. Before this latest report, the consensus had been expecting revenues of US$13.3m and US$0.81 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.
Check out our latest analysis for Opus Genetics
Yet despite these upgrades, the analysts cut their price target 31% to US$7.33, implicitly signalling that the ongoing losses are likely to weigh negatively on Opus Genetics’ valuation. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company’s valuation. Currently, the most bullish analyst values Opus Genetics at US$8.00 per share, while the most bearish prices it at US$6.00. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.
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. We would highlight that Opus Genetics’ revenue growth is expected to slow, with the forecast 17% annualised growth rate until the end of 2025 being well below the historical 44% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 17% annually. Factoring in the forecast slowdown in growth, it looks like Opus Genetics is forecast to grow at about the same rate as the wider industry.
