Aclaris Therapeutics, Inc. (NASDAQ:ACRS) Analysts Just Slashed This Year's Revenue Estimates By 11%
The analysts covering Aclaris Therapeutics, Inc. (NASDAQ:ACRS) delivered a dose of negativity to shareholders today, by making a substantial revision to their statutory forecasts for this year. Revenue estimates were cut sharply as the analysts signalled a weaker outlook - perhaps a sign that investors should temper their expectations as well.
Following the latest downgrade, the current consensus, from the nine analysts covering Aclaris Therapeutics, is for revenues of US$7.5m in 2023, which would reflect a painful 76% reduction in Aclaris Therapeutics' sales over the past 12 months. Per-share losses are expected to explode, reaching US$1.79 per share. However, before this estimates update, the consensus had been expecting revenues of US$8.4m and US$1.80 per share in losses. So there's definitely been a change in sentiment in this update, with the analysts administering a substantial haircut to this year's revenue estimates, while at the same time holding losses per share steady.
View our latest analysis for Aclaris Therapeutics
Of course, another way to look at these forecasts is to place them into context against the industry itself. These estimates imply that sales are expected to slow, with a forecast annualised revenue decline of 94% by the end of 2023. This indicates a significant reduction from annual growth of 43% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 7.1% per year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Aclaris Therapeutics is expected to lag the wider industry.
The Bottom Line
Regrettably, they also downgraded their revenue estimates, and the latest forecasts imply the business will grow sales slower than the wider market. Often, one downgrade can set off a daisy-chain of cuts, especially if an industry is in decline. So we wouldn't be surprised if the market became a lot more cautious on Aclaris Therapeutics after today.
That said, the analysts might have good reason to be negative on Aclaris Therapeutics, given dilutive stock issuance over the past year. For more information, you can click here to discover this and the 2 other concerns we've identified.
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