OmniAb, Inc. (NASDAQ:OABI) just released its latest third-quarter report and things are not looking great. Earnings missed the mark badly, with revenues of US$4.2m falling 50% short of expectations. Losses correspondingly increased, with a US$0.16 per-share statutory loss some 16% larger than what the analysts expected. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. 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 current consensus from OmniAb's seven analysts is for revenues of US$46.9m in 2025. This would reflect a sizeable 130% increase on its revenue over the past 12 months. The loss per share is expected to ameliorate slightly, reducing to US$0.48. Before this earnings announcement, the analysts had been modelling revenues of US$53.5m and losses of US$0.41 per share in 2025. So there's been quite a change-up of views after the recent consensus updates, withthe analysts making a serious cut to their revenue outlook while also expecting losses per share to increase.

There was no major change to the consensus price target of US$9.75, signalling that the business is performing roughly in line with expectations, despite lower earnings per share forecasts. 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 OmniAb at US$12.00 per share, while the most bearish prices it at US$8.00. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

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. It's clear from the latest estimates that OmniAb's rate of growth is expected to accelerate meaningfully, with the forecast 95% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 6.2% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 6.5% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that OmniAb is expected to grow much faster than its industry.

The Bottom Line

The most important thing to take away is that the analysts increased their loss per share estimates for next year. They also downgraded OmniAb's revenue estimates, but industry data suggests that it is expected to grow faster than the wider industry. The consensus price target held steady at US$9.75, with the latest estimates not enough to have an impact on their price targets.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have forecasts for OmniAb going out to 2026, and you can see them free on our platform here.

Don't forget that there may still be risks. For instance, we've identified 2 warning signs for OmniAb 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.