Analysts Have Just Cut Their Aclaris Therapeutics, Inc. (NASDAQ:ACRS) Revenue Estimates By 51%
The latest analyst coverage could presage a bad day for Aclaris Therapeutics, Inc. (NASDAQ:ACRS), with the analysts making across-the-board cuts to their statutory estimates that might leave shareholders a little shell-shocked. Revenue estimates were cut sharply as analysts signalled a weaker outlook - perhaps a sign that investors should temper their expectations as well.
Following the latest downgrade, the seven analysts covering Aclaris Therapeutics provided consensus estimates of US$5.6m revenue in 2024, which would reflect a sizeable 82% decline on its sales over the past 12 months. Losses are forecast to hold steady at around US$1.23 per share. Yet before this consensus update, the analysts had been forecasting revenues of US$11m and losses of US$1.15 per share in 2024. Ergo, there's been a clear change in sentiment, with the analysts administering a notable cut to this year's revenue estimates, while at the same time increasing their loss per share forecasts.
See our latest analysis for Aclaris Therapeutics
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. We would highlight that sales are expected to reverse, with a forecast 82% annualised revenue decline to the end of 2024. That is a notable change from historical growth of 44% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 9.1% annually for the foreseeable future. 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
The most important thing to note from this downgrade is that the consensus increased its forecast losses this year, suggesting all may not be well at Aclaris Therapeutics. Unfortunately analysts also downgraded their revenue estimates, and industry data suggests that Aclaris Therapeutics' revenues are expected to grow slower than the wider market. Given the stark change in sentiment, we'd understand if investors became 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 4 other concerns we've identified.
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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.
