Amylyx Pharmaceuticals, Inc. (NASDAQ:AMLX) Analysts Are Reducing Their Forecasts For This Year
Market forces rained on the parade of Amylyx Pharmaceuticals, Inc. (NASDAQ:AMLX) shareholders today, when the analysts downgraded their forecasts for this year. Both revenue and earnings per share (EPS) forecasts went under the knife, suggesting analysts have soured majorly on the business.
After the downgrade, the seven analysts covering Amylyx Pharmaceuticals are now predicting revenues of US$396m in 2024. If met, this would reflect a credible 4.0% improvement in sales compared to the last 12 months. Statutory earnings per share are anticipated to dive 33% to US$0.49 in the same period. Prior to this update, the analysts had been forecasting revenues of US$489m and earnings per share (EPS) of US$0.83 in 2024. It looks like analyst sentiment has declined substantially, with a substantial drop in revenue estimates and a large cut to earnings per share numbers as well.
Check out our latest analysis for Amylyx Pharmaceuticals
The consensus price target fell 38% to US$22.00, with the weaker earnings outlook clearly leading analyst valuation estimates.
Of course, another way to look at these forecasts is to place them into context against the industry itself. It's pretty clear that there is an expectation that Amylyx Pharmaceuticals' revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 4.0% growth on an annualised basis. This is compared to a historical growth rate of 135% over the past three years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 9.1% per year. Factoring in the forecast slowdown in growth, it seems obvious that Amylyx Pharmaceuticals is also expected to grow slower than other industry participants.
The Bottom Line
The biggest issue in the new estimates is that analysts have reduced their earnings per share estimates, suggesting business headwinds lay ahead for Amylyx Pharmaceuticals. Regrettably, they also downgraded their revenue estimates, and the latest forecasts imply the business will grow sales slower than the wider market. Given the scope of the downgrades, it would not be a surprise to see the market become more wary of the business.
That said, the analysts might have good reason to be negative on Amylyx Pharmaceuticals, given dilutive stock issuance over the past year. For more information, you can click here to discover this and the 3 other warning signs we've identified.
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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.
