There's been a notable change in appetite for Corbus Pharmaceuticals Holdings, Inc. (NASDAQ:CRBP) shares in the week since its yearly report, with the stock down 10% to US$4.07. Revenues of US$36m came in 4.7% below estimates, but statutory losses were slightly better than expected, at US$1.12 per share. Earnings are an important time for investors, as they can track a company's performance, look at what top analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We've gathered the most recent statutory forecasts to see whether analysts have changed their earnings models, following these results.
Following the recent earnings report, the consensus fromfive analysts covering Corbus Pharmaceuticals Holdings expects revenues of US$8.70m in 2020, implying a painful 76% decline in sales compared to the last 12 months. Losses are predicted to fall substantially, shrinking 59% (on a statutory basis) to US$1.78. Before this latest report, the consensus had been expecting revenues of US$8.94m and US$1.86 per share in losses. Although analysts have lowered their sales forecasts, they've also made a slight bump in their earnings per share estimates, which implies there's been something of an uptick in sentiment following the latest results.
The consensus price target fell 8.0% to US$23.80, with the dip in revenue estimates clearly souring analyst sentiment, despite the forecast reduction in losses. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic Corbus Pharmaceuticals Holdings analyst has a price target of US$28.00 per share, while the most pessimistic values it at US$17.00. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Corbus Pharmaceuticals Holdings shareholders.
In addition, we can look to Corbus Pharmaceuticals Holdings's past performance and see whether business is expected to improve, and if the company is expected to perform better than wider market. These estimates imply that sales are expected to slow, with a forecast revenue decline of 76% a significant reduction from annual growth of 106% over the last three years. By contrast, our data suggests that other companies (with analyst coverage) in the same market are forecast to see their revenue grow 16% annually for the foreseeable future. It's pretty clear that Corbus Pharmaceuticals Holdings's revenues are expected to perform substantially worse than the wider market.
The Bottom Line
The most important thing to take away is that analysts increased their loss per share estimates for next year. Unfortunately, analysts also downgraded their revenue estimates, and our data indicates revenues are expected to perform worse than the wider market. Even so, earnings per share are more important to the intrinsic value of the business. Still, earnings are more important to the long-term value of the business. The consensus price target fell measurably, with analysts seemingly not reassured by the latest results, leading to a lower estimate of Corbus Pharmaceuticals Holdings's future valuation.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Corbus Pharmaceuticals Holdings going out to 2024, and you can see them free on our platform here..
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