Maravai LifeSciences Holdings, Inc. (NASDAQ:MRVI) Just Reported Earnings, And Analysts Cut Their Target Price

The investors in Maravai LifeSciences Holdings, Inc.'s (NASDAQ:MRVI) will be rubbing their hands together with glee today, after the share price leapt 35% to US$2.75 in the week following its second-quarter results. It was a pretty bad result overall; while revenues were in line with expectations at US$47m, statutory losses exploded to US$0.27 per share. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

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Taking into account the latest results, the current consensus, from the 13 analysts covering Maravai LifeSciences Holdings, is for revenues of US$192.5m in 2025. This implies a not inconsiderable 12% reduction in Maravai LifeSciences Holdings' revenue over the past 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 46% to US$0.72. Before this latest report, the consensus had been expecting revenues of US$194.8m and US$0.63 per share in losses. While this year's revenue estimates held steady, there was also a considerable increase in loss per share expectations, suggesting the consensus has a bit of a mixed view on the stock.

Check out our latest analysis for Maravai LifeSciences Holdings

With the increase in forecast losses for next year, it's perhaps no surprise to see that the average price target dipped 19% to US$4.13, with the analysts signalling that growing losses would be a definite concern. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Maravai LifeSciences Holdings at US$5.00 per share, while the most bearish prices it at US$2.00. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Maravai LifeSciences Holdings' past performance and to peers in the same industry. One thing that stands out from these estimates is that shrinking revenues are expected to moderate over the period ending 2025 compared to the historical decline of 55% per annum over the past three years. Compare this against analyst estimates for companies in the broader industry, which suggest that revenues (in aggregate) are expected to grow 6.0% annually. So while a broad number of companies are forecast to grow, unfortunately Maravai LifeSciences Holdings is expected to see its revenue affected worse than other companies in the 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 Maravai LifeSciences Holdings. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Maravai LifeSciences Holdings' revenue is expected to perform worse than the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Maravai LifeSciences Holdings' future valuation.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Maravai LifeSciences Holdings going out to 2027, and you can see them free on our platform here.

However, before you get too enthused, we've discovered 1 warning sign for Maravai LifeSciences Holdings that you should be aware 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.