It's been a mediocre week for Myriad Genetics, Inc. (NASDAQ:MYGN) shareholders, with the stock dropping 11% to US$10.42 in the week since its latest annual results. The statutory results were mixed overall, with revenues of US$838m in line with analyst forecasts, but losses of US$1.41 per share, some 5.4% larger than the analysts were predicting. 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.

See our latest analysis for Myriad Genetics

Taking into account the latest results, Myriad Genetics' 15 analysts currently expect revenues in 2025 to be US$850.3m, approximately in line with the last 12 months. Losses are predicted to fall substantially, shrinking 43% to US$0.79. Yet prior to the latest earnings, the analysts had been forecasting revenues of US$864.6m and losses of US$0.69 per share in 2025. So it's pretty clear the analysts have mixed opinions on Myriad Genetics even after this update; although they reconfirmed their revenue numbers, it came at the cost of a noticeable increase in per-share losses.

With the increase in forecast losses for next year, it's perhaps no surprise to see that the average price target dipped 6.3% to US$19.13, with the analysts signalling that growing losses would be a definite concern. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Myriad Genetics analyst has a price target of US$29.00 per share, while the most pessimistic values it at US$11.00. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We would highlight that Myriad Genetics' revenue growth is expected to slow, with the forecast 1.5% annualised growth rate until the end of 2025 being well below the historical 4.1% 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 20% annually. Factoring in the forecast slowdown in growth, it seems obvious that Myriad Genetics is also expected to grow slower than other industry participants.

The Bottom Line

The most important thing to take away is that the analysts increased their loss per share estimates for 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 Myriad Genetics' revenue is expected to 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 Myriad Genetics' future valuation.

With that in mind, we wouldn't be too quick to come to a conclusion on Myriad Genetics. Long-term earnings power is much more important than next year's profits. We have forecasts for Myriad Genetics going out to 2027, and you can see them free on our platform here.

You still need to take note of risks, for example - Myriad Genetics has 1 warning sign we think you should be aware of.

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.