Analyst Estimates: Here's What Brokers Think Of Halozyme Therapeutics, Inc. (NASDAQ:HALO) After Its Full-Year Report
Shareholders of Halozyme Therapeutics, Inc. (NASDAQ:HALO) will be pleased this week, given that the stock price is up 11% to US$39.72 following its latest full-year results. Halozyme Therapeutics reported in line with analyst predictions, delivering revenues of US$829m and statutory earnings per share of US$2.10, suggesting the business is executing well and in line with its plan. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
Check out our latest analysis for Halozyme Therapeutics
Following the latest results, Halozyme Therapeutics' ten analysts are now forecasting revenues of US$956.8m in 2024. This would be a decent 15% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to jump 35% to US$2.99. Before this earnings report, the analysts had been forecasting revenues of US$961.1m and earnings per share (EPS) of US$3.00 in 2024. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.
The analysts reconfirmed their price target of US$48.10, showing that the business is executing well and in line with expectations. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. There are some variant perceptions on Halozyme Therapeutics, with the most bullish analyst valuing it at US$72.00 and the most bearish at US$28.00 per share. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.
Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. It's pretty clear that there is an expectation that Halozyme Therapeutics' revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 15% growth on an annualised basis. This is compared to a historical growth rate of 35% over the past five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 17% annually. Factoring in the forecast slowdown in growth, it looks like Halozyme Therapeutics is forecast to grow at about the same rate as the wider industry.
The Bottom Line
The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. The consensus price target held steady at US$48.10, with the latest estimates not enough to have an impact on their price targets.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Halozyme Therapeutics analysts - going out to 2026, and you can see them free on our platform here.
And what about risks? Every company has them, and we've spotted 1 warning sign for Halozyme Therapeutics you should know about.
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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.
