Rapid Micro Biosystems, Inc. (NASDAQ:RPID) last week reported its latest quarterly results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. Revenues beat expectations, with US$7.6m in revenue being 16% above estimates. The company still lost US$0.26 per share, tracking roughly in line with expectations. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

Check out our latest analysis for Rapid Micro Biosystems

After the latest results, the twin analysts covering Rapid Micro Biosystems are now predicting revenues of US$32.8m in 2025. If met, this would reflect a sizeable 25% improvement in revenue compared to the last 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 21% to US$0.90. Before this earnings announcement, the analysts had been modelling revenues of US$35.1m and losses of US$0.84 per share in 2025. So it's pretty clear consensus is more negative on Rapid Micro Biosystems after the new consensus numbers; while the analysts trimmed their revenue estimates, they also administered a pronounced increase to per-share loss expectations.

The analysts lifted their price target 36% to US$8.00, implicitly signalling that lower earnings per share are not expected to have a longer-term impact on the stock's value.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Rapid Micro Biosystems' past performance and to peers in the same industry. It's clear from the latest estimates that Rapid Micro Biosystems' rate of growth is expected to accelerate meaningfully, with the forecast 20% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 6.3% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 6.5% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Rapid Micro Biosystems is expected to grow much faster than its industry.

The Bottom Line

The most important thing to take away is that the analysts increased their loss per share estimates for next year. They also downgraded Rapid Micro Biosystems' revenue estimates, but industry data suggests that it 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.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At least one analyst has provided forecasts out to 2025, which can be seen for free on our platform here.

Don't forget that there may still be risks. For instance, we've identified 2 warning signs for Rapid Micro Biosystems that 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.