AbCellera Biologics Inc. (NASDAQ:ABCL) investors will be delighted, with the company turning in some strong numbers with its latest results. The results were impressive, with revenues of US$8.3m exceeding analyst forecasts by 42%, and statutory losses of US$0.14 were likewise much smaller than the analysts had forecast. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

Taking into account the latest results, the current consensus, from the eight analysts covering AbCellera Biologics, is for revenues of US$31.1m in 2026. This implies a painful 61% reduction in AbCellera Biologics' revenue over the past 12 months. Losses are forecast to balloon 40% to US$0.66 per share. Yet prior to the latest earnings, the analysts had been forecasting revenues of US$30.2m and losses of US$0.73 per share in 2026. It looks like there's been a modest increase in sentiment in the recent updates, with the analysts becoming a bit more optimistic in their predictions for both revenues and losses per share.

The consensus price target rose 11% to US$10.14, with the analysts encouraged by the higher revenue and lower forecast losses for next year. 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. The most optimistic AbCellera Biologics analyst has a price target of US$13.00 per share, while the most pessimistic values it at US$7.00. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

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. One more thing stood out to us about these estimates, and it's the idea that AbCellera Biologics' decline is expected to accelerate, with revenues forecast to fall at an annualised rate of 71% to the end of 2026. This tops off a historical decline of 52% a year over the past five years. Compare this against analyst estimates for companies in the broader industry, which suggest that revenues (in aggregate) are expected to grow 6.6% annually. So it's pretty clear that, while it does have declining revenues, the analysts also expect AbCellera Biologics to suffer worse than the wider industry.

The Bottom Line

The most obvious conclusion is that the analysts made no changes to their forecasts for a loss next year. Fortunately, they also upgraded their revenue estimates, although our data indicates it is expected to perform worse than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for AbCellera Biologics going out to 2028, and you can see them free on our platform here.

Even so, be aware that AbCellera Biologics is showing 2 warning signs in our investment analysis , and 1 of those is significant...

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.