Akebia Therapeutics, Inc. (NASDAQ:AKBA) Analysts Are Reducing Their Forecasts For Next Year
The analysts covering Akebia Therapeutics, Inc. (NASDAQ:AKBA) delivered a dose of negativity to shareholders today, by making a substantial revision to their statutory forecasts for next year. Both revenue and earnings per share (EPS) forecasts went under the knife, suggesting the analysts have soured majorly on the business.
Following the downgrade, the consensus from eight analysts covering Akebia Therapeutics is for revenues of US$240m in 2021, implying a concerning 22% decline in sales compared to the last 12 months. Losses are predicted to fall substantially, shrinking 64% to US$1.08. However, before this estimates update, the consensus had been expecting revenues of US$277m and US$0.83 per share in losses. Ergo, there's been a clear change in sentiment, with the analysts administering a notable cut to next year's revenue estimates, while at the same time increasing their loss per share forecasts.
View our latest analysis for Akebia Therapeutics
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Akebia Therapeutics' past performance and to peers in the same industry. We would highlight that sales are expected to reverse, with the forecast 22% revenue decline a notable change from historical growth of 28% over the last three years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 21% annually for the foreseeable future. It's pretty clear that Akebia Therapeutics' revenues are expected to perform substantially worse than the wider industry.
The Bottom Line
The most important thing to take away is that analysts increased their loss per share estimates for next year. Unfortunately analysts also downgraded their revenue estimates, and industry data suggests that Akebia Therapeutics' revenues are expected to grow slower than the wider market. We wouldn't be surprised to find shareholders feeling a bit shell-shocked, after these downgrades. It looks like analysts have become a lot more bearish on Akebia Therapeutics, and their negativity could be grounds for caution.
Still, the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Akebia Therapeutics analysts - going out to 2024, and you can see them free on our platform here.
Another way to search for interesting companies that could be reaching an inflection point is to track whether management are buying or selling, with our free list of growing companies that insiders are buying.
This article by Simply Wall St is general in nature. 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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com.
