The Consensus EPS Estimates For Precigen, Inc. (NASDAQ:PGEN) Just Fell Dramatically

One thing we could say about the analysts on Precigen, Inc. (NASDAQ:PGEN) - they aren't optimistic, having just made a major negative revision to their near-term (statutory) forecasts for the organization. Both revenue and earnings per share (EPS) estimates were cut sharply as analysts factored in the latest outlook for the business, concluding that they were too optimistic previously.

Following the latest downgrade, the current consensus, from the four analysts covering Precigen, is for revenues of US$8.8m in 2023, which would reflect a disturbing 62% reduction in Precigen's sales over the past 12 months. Per-share losses are expected to explode, reaching US$0.42 per share. However, before this estimates update, the consensus had been expecting revenues of US$12m and US$0.38 per share in losses. Ergo, there's been a clear change in sentiment, with the analysts administering a notable cut to this year's revenue estimates, while at the same time increasing their loss per share forecasts.

See our latest analysis for Precigen

Of course, another way to look at these forecasts is to place them into context against the industry itself. Over the past five years, revenues have declined around 30% annually. Worse, forecasts are essentially predicting the decline to accelerate, with the estimate for an annualised 73% decline in revenue until the end of 2023. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue grow 19% per year. So it's pretty clear that, while it does have declining revenues, the analysts also expect Precigen to suffer worse than the wider industry.

The Bottom Line

The most important thing to note from this downgrade is that the consensus increased its forecast losses this year, suggesting all may not be well at Precigen. Unfortunately analysts also downgraded their revenue estimates, and industry data suggests that Precigen's revenues are expected to grow slower than the wider market. Given the serious cut to this year's outlook, it's clear that analysts have turned more bearish on Precigen, and we wouldn't blame shareholders for feeling a little more cautious themselves.

As you can see, the analysts clearly aren't bullish, and there might be good reason for that. We've identified some potential issues with Precigen's financials, such as dilutive stock issuance over the past year. For more information, you can click here to discover this and the 3 other concerns we've identified.

Another way to search for interesting companies that could be reaching an inflection point is to track whether management are buying or selling, with our free list of growing companies that insiders are buying.

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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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