BioHarvest Sciences Inc. (NASDAQ:BHST) missed earnings with its latest second-quarter results, disappointing overly-optimistic forecasters. It was a pretty negative result overall, with revenues of US$8.8m missing analyst predictions by 6.5%. Worse, the business reported a statutory loss of US$0.17 per share, much larger than the analysts had forecast prior to the result. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on BioHarvest Sciences after the latest results.

After the latest results, the four analysts covering BioHarvest Sciences are now predicting revenues of US$37.4m in 2026. If met, this would reflect a reasonable 5.5% improvement in revenue compared to the last 12 months. Losses are expected to increase slightly, to US$0.53 per share. Yet prior to the latest earnings, the analysts had been forecasting revenues of US$42.9m and losses of US$0.41 per share in 2026. So there's been quite a change-up of views after the recent consensus updates, withthe analysts making a serious cut to their revenue outlook while also expecting losses per share to increase.

The average price target fell 18% to US$10.50, implicitly signalling that lower earnings per share are a leading indicator for BioHarvest Sciences' valuation. 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 BioHarvest Sciences at US$15.00 per share, while the most bearish prices it at US$5.00. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We would highlight that BioHarvest Sciences' revenue growth is expected to slow, with the forecast 11% annualised growth rate until the end of 2026 being well below the historical 50% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 3.6% annually. Even after the forecast slowdown in growth, it seems obvious that BioHarvest Sciences is also expected to grow faster than the wider industry.

The Bottom Line

The most important thing to note is the forecast of increased losses next year, suggesting all may not be well at BioHarvest Sciences. They also downgraded BioHarvest Sciences' revenue estimates, but industry data suggests that it is expected to grow faster than the wider industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for BioHarvest Sciences going out to 2028, and you can see them free on our platform here..

That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 2 warning signs with BioHarvest Sciences (at least 1 which is concerning) , and understanding them should be part of your investment process.

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.