Veracyte, Inc. (NASDAQ:VCYT) just released its quarterly report and things are looking bullish. The company beat forecasts, with revenue of US$114m, some 3.2% above estimates, and statutory earnings per share (EPS) coming in at US$0.09, 260% ahead of expectations. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

We check all companies for important risks. See what we found for Veracyte in our free report.NasdaqGM:VCYT Earnings and Revenue Growth May 10th 2025

Following the latest results, Veracyte's eleven analysts are now forecasting revenues of US$492.7m in 2025. This would be a reasonable 6.3% improvement in revenue compared to the last 12 months. Per-share earnings are expected to surge 20% to US$0.51. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$488.3m and earnings per share (EPS) of US$0.48 in 2025. So the consensus seems to have become somewhat more optimistic on Veracyte's earnings potential following these results.

See our latest analysis for Veracyte

The consensus price target fell 5.2% to US$40.00, suggesting the increase in earnings forecasts was not enough to offset other the analysts concerns. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Veracyte analyst has a price target of US$45.00 per share, while the most pessimistic values it at US$29.00. 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.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. It's pretty clear that there is an expectation that Veracyte's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 8.5% growth on an annualised basis. This is compared to a historical growth rate of 28% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 18% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Veracyte.

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The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Veracyte following these results. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will 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 Veracyte's future valuation.

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 Veracyte going out to 2027, and you can see them free on our platform here..

We also provide an overview of the Veracyte Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock,  here.

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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.

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