As you might know, Veracyte, Inc. (NASDAQ:VCYT) just kicked off its latest quarterly results with some very strong numbers. The company beat forecasts, with revenue of US$116m, some 5.5% above estimates, and statutory earnings per share (EPS) coming in at US$0.19, 296% ahead of expectations. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

View our latest analysis for Veracyte

After the latest results, the ten analysts covering Veracyte are now predicting revenues of US$485.2m in 2025. If met, this would reflect a meaningful 14% improvement in revenue compared to the last 12 months. Earnings are expected to improve, with Veracyte forecast to report a statutory profit of US$0.39 per share. In the lead-up to this report, the analysts had been modelling revenues of US$479.8m and earnings per share (EPS) of US$0.38 in 2025. So the consensus seems to have become somewhat more optimistic on Veracyte's earnings potential following these results.

The consensus price target rose 8.0% to US$40.63, suggesting that higher earnings estimates flow through to the stock's valuation as well. 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. Currently, the most bullish analyst values Veracyte at US$50.00 per share, while the most bearish prices it at US$26.00. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We would highlight that Veracyte's revenue growth is expected to slow, with the forecast 11% annualised growth rate until the end of 2025 being well below the historical 29% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 21% annually. Factoring in the forecast slowdown in growth, it seems obvious that Veracyte is also expected to grow slower than other industry participants.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Veracyte's earnings potential next year. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Veracyte's revenue is expected to perform worse 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.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Veracyte analysts - going out to 2026, and you can see them free on our platform here.

It is also worth noting that we have found 1 warning sign for Veracyte that you need to take into consideration.

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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.