Ginkgo Bioworks Holdings, Inc. (NYSE:DNA) First-Quarter Results: Here's What Analysts Are Forecasting For This Year

As you might know, Ginkgo Bioworks Holdings, Inc. (NYSE:DNA) just kicked off its latest quarterly results with some very strong numbers. Overall results were decent, with revenues of US$48m beating estimates by25%. Statutory losses were subsequently less thanthe analysts had expected, at US$1.68 per share. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

Taking into account the latest results, the six analysts covering Ginkgo Bioworks Holdings provided consensus estimates of US$176.8m revenue in 2025, which would reflect a substantial 26% decline over the past 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 29% to US$6.16. Before this latest report, the consensus had been expecting revenues of US$173.0m and US$6.13 per share in losses.

View our latest analysis for Ginkgo Bioworks Holdings

There were no major changes to the US$8.20consensus price target despite the higher revenue estimates, with the analysts seeming to believe that ongoing losses have a larger impact on the valuation. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values Ginkgo Bioworks Holdings at US$12.00 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. One thing that stands out from these estimates is that revenues are expected to keep falling until the end of 2025, roughly in line with the historical decline of 35% per annum over the past three years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue grow 4.2% per year. So it's pretty clear that, while it does have declining revenues, the analysts also expect Ginkgo Bioworks Holdings 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. They also upgraded their revenue estimates for next year, even though it is expected to grow slower than the wider industry. The consensus price target held steady at US$8.20, 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. At Simply Wall St, we have a full range of analyst estimates for Ginkgo Bioworks Holdings going out to 2027, and you can see them free on our platform here..

We don't want to rain on the parade too much, but we did also find 2 warning signs for Ginkgo Bioworks Holdings that you need to be mindful of.

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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.