Analysts Just Published A Bright New Outlook For Eton Pharmaceuticals, Inc.'s (NASDAQ:ETON)
Celebrations may be in order for Eton Pharmaceuticals, Inc. (NASDAQ:ETON) shareholders, with the analysts delivering a significant upgrade to their statutory estimates for the company. Consensus estimates suggest investors could expect greatly increased statutory revenues and earnings per share, with analysts modelling a real improvement in business performance.
Following the upgrade, the most recent consensus for Eton Pharmaceuticals from its dual analysts is for revenues of US$31m in 2022 which, if met, would be a sizeable 41% increase on its sales over the past 12 months. The loss per share is anticipated to greatly reduce in the near future, narrowing 43% to US$0.045. Yet before this consensus update, the analysts had been forecasting revenues of US$28m and losses of US$0.09 per share in 2022. So there's been quite a change-up of views after the recent consensus updates, with the analysts making a sizeable increase to their revenue forecasts while also reducing the estimated loss as the business grows towards breakeven.
Check out our latest analysis for Eton Pharmaceuticals
Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that Eton Pharmaceuticals' revenue growth is expected to slow, with the forecast 41% annualised growth rate until the end of 2022 being well below the historical 124% p.a. growth over the last three years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 3.8% per year. Even after the forecast slowdown in growth, it seems obvious that Eton Pharmaceuticals is also expected to grow faster than the wider industry.
The Bottom Line
The most important thing here is that analysts reduced their loss per share estimates for this year, reflecting increased optimism around Eton Pharmaceuticals' prospects. They also upgraded their revenue estimates for this year, and sales are expected to grow faster than the wider market. With a serious upgrade to expectations, it might be time to take another look at Eton Pharmaceuticals.
Better yet, Eton Pharmaceuticals is expected to break-even soon - within the next few years - according to analyst forecasts, which would be a momentous event for shareholders. For more information, you can click through to our free platform to learn more about these forecasts.
Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are upgrading their estimates. So you may also wish to search this free list of stocks 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.
