Biohaven Pharmaceutical Holding Company Ltd. (NYSE:BHVN) Just Released Its First-Quarter Results And Analysts Are Updating Their Estimates
Biohaven Pharmaceutical Holding Company Ltd. (NYSE:BHVN) shareholders are probably feeling a little disappointed, since its shares fell 5.1% to US$68.27 in the week after its latest first-quarter results. It was a pretty bad result overall; while revenues were in line with expectations at US$44m, statutory losses exploded to US$4.21 per share. 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 collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
See our latest analysis for Biohaven Pharmaceutical Holding
Taking into account the latest results, the most recent consensus for Biohaven Pharmaceutical Holding from twelve analysts is for revenues of US$240.6m in 2021 which, if met, would be a huge 126% increase on its sales over the past 12 months. Losses are supposed to decline, shrinking 12% from last year to US$12.58. Yet prior to the latest earnings, the analysts had been forecasting revenues of US$246.1m and losses of US$10.94 per share in 2021. So it's pretty clear the analysts have mixed opinions on Biohaven Pharmaceutical Holding after this update; revenues were downgraded and per-share losses expected to increase.
The average price target was broadly unchanged at US$101, perhaps implicitly signalling that the weaker earnings outlook is not expected to have a long-term impact on the valuation. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on Biohaven Pharmaceutical Holding, with the most bullish analyst valuing it at US$125 and the most bearish at US$76.00 per share. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Biohaven Pharmaceutical Holding's past performance and to peers in the same industry. We would highlight that Biohaven Pharmaceutical Holding's revenue growth is expected to slow, with the forecast 197% annualised growth rate until the end of 2021 being well below the historical 9,135% growth over the last year. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 14% per year. Even after the forecast slowdown in growth, it seems obvious that Biohaven Pharmaceutical Holding is also expected to grow faster than the wider industry.
The Bottom Line
The most important thing to note is the forecast of increased losses next year, suggesting all may not be well at Biohaven Pharmaceutical Holding. They also downgraded their revenue estimates, although industry data suggests that Biohaven Pharmaceutical Holding's revenues are expected to grow faster than the wider industry. The consensus price target held steady at US$101, with the latest estimates not enough to have an impact on their price targets.
Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have forecasts for Biohaven Pharmaceutical Holding going out to 2025, and you can see them free on our platform here.
Plus, you should also learn about the 4 warning signs we've spotted with Biohaven Pharmaceutical Holding (including 2 which are concerning) .
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.
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