GeneDx Holdings Corp. (NASDAQ:WGS) just released its latest second-quarter results and things are looking bullish. Revenues beat expectations coming in atUS$114m, ahead of estimates by 3.1%. Statutory losses were somewhat smaller thanthe analysts expected, coming in at US$0.60 per share. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on GeneDx Holdings after the latest results.

After the latest results, the ten analysts covering GeneDx Holdings are now predicting revenues of US$480.8m in 2026. If met, this would reflect a satisfactory 5.8% improvement in revenue compared to the last 12 months. Losses are expected to be contained, narrowing 10% from last year to US$3.20. Before this latest report, the consensus had been expecting revenues of US$478.4m and US$3.35 per share in losses. 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 losses per share, even though the revenue numbers were unchanged.

These new estimates led to the consensus price target rising 5.0% to US$85.89, with lower forecast losses suggesting things could be looking up for GeneDx Holdings. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic GeneDx Holdings analyst has a price target of US$103 per share, while the most pessimistic values it at US$63.00. 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 GeneDx Holdings' revenue growth is expected to slow, with the forecast 12% annualised growth rate until the end of 2026 being well below the historical 18% 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 5.0% annually. So it's pretty clear that, while GeneDx Holdings' revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

The Bottom Line

The most obvious conclusion is that the analysts made no changes to their forecasts for a loss next year. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster 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. At Simply Wall St, we have a full range of analyst estimates for GeneDx Holdings going out to 2028, and you can see them free on our platform here..

You can also see our analysis of GeneDx Holdings' Board and CEO remuneration and experience, and whether company insiders have been buying stock.

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.