Earnings Update: PhaseBio Pharmaceuticals, Inc. (NASDAQ:PHAS) Just Reported And Analysts Are Trimming Their Forecasts
PhaseBio Pharmaceuticals, Inc. (NASDAQ:PHAS) just released its latest third-quarter report and things are not looking great. It was not a great statutory result, with revenues coming in 100% lower than the analysts predicted. Unsurprisingly, earnings also fell seriously short of forecasts, turning into a per-share loss of US$0.86. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
See our latest analysis for PhaseBio Pharmaceuticals
Taking into account the latest results, the four analysts covering PhaseBio Pharmaceuticals provided consensus estimates of US$441.5k revenue in 2021, which would reflect a sizeable 59% decline on its sales over the past 12 months. The loss per share is expected to ameliorate slightly, reducing to US$2.62. Before this latest report, the consensus had been expecting revenues of US$476.4k and US$2.57 per share in losses.
The consensus price target was broadly unchanged at US$14.25, implying that the business is performing roughly in line with expectations, despite a downwards adjustment to forecast sales next year. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic PhaseBio Pharmaceuticals analyst has a price target of US$18.00 per share, while the most pessimistic values it at US$10.00. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.
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. One more thing stood out to us about these estimates, and it's the idea that PhaseBio Pharmaceuticals'decline is expected to accelerate, with revenues forecast to fall 59% next year, topping off a historical decline of 42% a year over the past year. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue grow 21% per year. So while a broad number of companies are forecast to decline, unfortunately PhaseBio Pharmaceuticals is expected to see its sales affected worse than other companies in the industry.
The Bottom Line
The most obvious conclusion is that the analysts made no changes to their forecasts for a loss next year. On the negative side, they also downgraded their revenue estimates, and forecasts imply revenues will perform worse than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.
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. At Simply Wall St, we have a full range of analyst estimates for PhaseBio Pharmaceuticals going out to 2024, and you can see them free on our platform here..
Don't forget that there may still be risks. For instance, we've identified 6 warning signs for PhaseBio Pharmaceuticals (2 are concerning) you should be aware of.
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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