Analysts Just Published A Bright New Outlook For Xencor, Inc.'s (NASDAQ:XNCR)
Xencor, Inc. (NASDAQ:XNCR) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's statutory forecasts. The consensus statutory numbers for both revenue and earnings per share (EPS) increased, with their view clearly much more bullish on the company's business prospects.
Following the upgrade, the most recent consensus for Xencor from its 13 analysts is for revenues of US$131m in 2023 which, if met, would be a solid 15% increase on its sales over the past 12 months. Per-share losses are expected to explode, reaching US$2.81 per share. Yet before this consensus update, the analysts had been forecasting revenues of US$110m and losses of US$3.26 per share in 2023. We can see there's definitely been a change in sentiment in this update, with the analysts administering a sizeable upgrade to this year's revenue estimates, while at the same time reducing their loss estimates.
View our latest analysis for Xencor
There was no major change to the consensus price target of US$44.14, perhaps suggesting that the analysts remain concerned about ongoing losses despite the improved earnings and revenue outlook.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Xencor's past performance and to peers in the same industry. The analysts are definitely expecting Xencor's growth to accelerate, with the forecast 33% annualised growth to the end of 2023 ranking favourably alongside historical growth of 20% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 15% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Xencor is expected to grow much faster than its industry.
The Bottom Line
The highlight for us was that the consensus reduced its estimated losses this year, perhaps suggesting Xencor is moving incrementally towards profitability. They also upgraded their revenue estimates for this year, and sales are expected to grow faster than the wider market. Some investors might be disappointed to see that the price target is unchanged, but we feel that improving fundamentals are usually a positive - assuming these forecasts are met! So Xencor could be a good candidate for more research.
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 Xencor analysts - going out to 2025, 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.
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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.
