Twist Bioscience Corporation (NASDAQ:TWST) defied analyst predictions to release its second-quarter results, which were ahead of market expectations. It looks like a positive result overall, with revenues of US$75m beating forecasts by 6.4%. Statutory losses of US$0.79 per share were 6.4% smaller than the analysts expected, likely helped along by the higher revenues. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

See our latest analysis for Twist Bioscience

Taking into account the latest results, the consensus forecast from Twist Bioscience's eight analysts is for revenues of US$303.0m in 2024. This reflects a notable 9.2% improvement in revenue compared to the last 12 months. Losses are forecast to narrow 9.6% to US$3.00 per share. Before this latest report, the consensus had been expecting revenues of US$293.1m and US$3.08 per share in losses. So there seems to have been a moderate uplift in analyst sentiment with the latest consensus release, given the upgrades to both revenue and loss per share forecasts for this year.

Despite these upgrades,the analysts have not made any major changes to their price target of US$40.88, implying that their latest estimates don't have a long term impact on what they think the stock is worth. 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 Twist Bioscience analyst has a price target of US$48.00 per share, while the most pessimistic values it at US$25.00. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Twist Bioscience shareholders.

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 Twist Bioscience's revenue growth is expected to slow, with the forecast 19% annualised growth rate until the end of 2024 being well below the historical 34% p.a. growth over the last five years. Compare this to the 576 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 18% per year. Factoring in the forecast slowdown in growth, it looks like Twist Bioscience is forecast to grow at about the same rate as the wider industry.

The Bottom Line

The most important thing to take away is that the analysts reconfirmed their loss per share estimates for next year. They also upgraded their revenue forecasts, although the latest estimates suggest that Twist Bioscience will grow in line with the overall industry. The consensus price target held steady at US$40.88, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates - from multiple Twist Bioscience analysts - going out to 2026, and you can see them free on our platform here.

It is also worth noting that we have found 3 warning signs for Twist Bioscience 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.