Thorne HealthTech, Inc. (NASDAQ:THRN) defied analyst predictions to release its second-quarter results, which were ahead of market expectations. It was overall a positive result, with revenues beating expectations by 6.0% to hit US$73m. Thorne HealthTech reported statutory earnings per share (EPS) US$0.08, which was a notable 14% above what the analysts had forecast. 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.
Taking into account the latest results, the current consensus from Thorne HealthTech's five analysts is for revenues of US$288.2m in 2023. This would reflect a meaningful 12% increase on its revenue over the past 12 months. Statutory earnings per share are expected to drop 12% to US$0.33 in the same period. In the lead-up to this report, the analysts had been modelling revenues of US$282.2m and earnings per share (EPS) of US$0.29 in 2023. So it seems there's been a definite increase in optimism about Thorne HealthTech's future following the latest results, with a substantial gain in the earnings per share forecasts in particular.
Althoughthe analysts have upgraded their earnings estimates, there was no change to the consensus price target of US$7.75, suggesting that the forecast performance does not have a long term impact on the company's valuation. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on Thorne HealthTech, with the most bullish analyst valuing it at US$8.00 and the most bearish at US$7.00 per share. This is a very narrow spread of estimates, implying either that Thorne HealthTech is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.
Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. The period to the end of 2023 brings more of the same, according to the analysts, with revenue forecast to display 25% growth on an annualised basis. That is in line with its 25% annual growth over the past year. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 6.6% annually. So although Thorne HealthTech is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.
The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Thorne HealthTech following these results. 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$7.75, with the latest estimates not enough to have an impact on their price targets.
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