What Does The Future Hold For Protagonist Therapeutics, Inc. (NASDAQ:PTGX)? These Analysts Have Been Cutting Their Estimates
One thing we could say about the analysts on Protagonist Therapeutics, Inc. (NASDAQ:PTGX) - they aren't optimistic, having just made a major negative revision to their near-term (statutory) forecasts for the organization. This report focused on revenue estimates, and it looks as though the consensus view of the business has become substantially more conservative.
Following the downgrade, the most recent consensus for Protagonist Therapeutics from its five analysts is for revenues of US$6.4m in 2020 which, if met, would be a substantial increase on its sales over the past 12 months. Losses are forecast to narrow 5.1% to US$2.83 per share. Yet prior to the latest estimates, the analysts had been forecasting revenues of US$11m and losses of US$2.69 per share in 2020. Ergo, there's been a clear change in sentiment, with the analysts administering a notable cut to this year's revenue estimates, while at the same time increasing their loss per share forecasts.
View our latest analysis for Protagonist Therapeutics
One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. For example, we noticed that Protagonist Therapeutics' rate of growth is expected to accelerate meaningfully, with revenues forecast to grow manyfold, well above its historical decline of 99% a year over the past year. Compare this against analyst estimates for the wider industry, which suggest that (in aggregate) industry revenues are expected to grow 17% next year. Not only are Protagonist Therapeutics' revenues expected to improve, it seems that the analysts are also expecting it to grow faster than the wider industry.
The Bottom Line
The most important thing to note from this downgrade is that the consensus increased its forecast losses this year, suggesting all may not be well at Protagonist Therapeutics. Unfortunately, analysts also downgraded their revenue estimates, although our data indicates revenues are expected to perform better than the wider market. Overall, given the drastic downgrade to this year's forecasts, we'd be feeling a little more wary of Protagonist Therapeutics going forwards.
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 Protagonist Therapeutics' business, like dilutive stock issuance over the past year. Learn more, and discover the 3 other risks we've identified, for 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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