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Some Analysts Just Cut Their Nabriva Therapeutics plc (NASDAQ:NBRV) Estimates

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The analysts covering Nabriva Therapeutics plc (NASDAQ:NBRV) 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 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 four analysts covering Nabriva Therapeutics, is for revenues of US$3.6m in 2020, which would reflect a sizeable 58% reduction in Nabriva Therapeutics' sales over the past 12 months. Before the latest update, the analysts were foreseeing US$5.6m of revenue in 2020. It looks like forecasts have become a fair bit less optimistic on Nabriva Therapeutics, given the sizeable cut to revenue estimates.

Check out our latest analysis for Nabriva Therapeutics

earnings-and-revenue-growth
earnings-and-revenue-growth

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 revenue decline of 58%, a significant reduction from annual growth of 16% 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 6.8% annually for the foreseeable future. It's pretty clear that Nabriva Therapeutics' revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The clear low-light was that analysts slashing their revenue forecasts for Nabriva Therapeutics this year. They're also anticipating slower revenue growth than the wider market. Given the stark change in sentiment, we'd understand if investors became more cautious on Nabriva Therapeutics after today.

After a downgrade like this, it's pretty clear that previous forecasts were too optimistic. What's more, we've spotted several possible issues with Nabriva Therapeutics' business, like major dilution from new stock issuance in the past year. For more information, you can click here to discover this and the 3 other concerns we've identified.

Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are downgrading their estimates. So you may also wish to search this free list of stocks 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.