Investors in 10x Genomics, Inc. (NASDAQ:TXG) had a good week, as its shares rose 3.5% to close at US$16.03 following the release of its third-quarter results. The results look positive overall; while revenues of US$152m were in line with analyst predictions, statutory losses were 6.4% smaller than expected, with 10x Genomics losing US$0.30 per share. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

View our latest analysis for 10x Genomics

Taking into account the latest results, 10x Genomics' 16 analysts currently expect revenues in 2025 to be US$635.4m, approximately in line with the last 12 months. Losses are supposed to decline, shrinking 19% from last year to US$1.22. Before this earnings announcement, the analysts had been modelling revenues of US$704.6m and losses of US$0.95 per share in 2025. So it's pretty clear the analysts have mixed opinions on 10x Genomics after this update; revenues were downgraded and per-share losses expected to increase.

The average price target fell 17% to US$20.29, implicitly signalling that lower earnings per share are a leading indicator for 10x Genomics' valuation. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on 10x Genomics, with the most bullish analyst valuing it at US$30.00 and the most bearish at US$14.00 per share. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's pretty clear that there is an expectation that 10x Genomics' revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 0.7% growth on an annualised basis. This is compared to a historical growth rate of 20% over the past five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 6.5% annually. Factoring in the forecast slowdown in growth, it seems obvious that 10x Genomics is also expected to grow slower than other industry participants.

The Bottom Line

The most important thing to note is the forecast of increased losses next year, suggesting all may not be well at 10x Genomics. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse than the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of 10x Genomics' future valuation.

With that in mind, we wouldn't be too quick to come to a conclusion on 10x Genomics. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for 10x Genomics going out to 2026, and you can see them free on our platform here..

Before you take the next step you should know about the 4 warning signs for 10x Genomics that we have uncovered.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.