Earnings Update: Protagonist Therapeutics, Inc. (NASDAQ:PTGX) Just Reported And Analysts Are Boosting Their Estimates
Protagonist Therapeutics, Inc. (NASDAQ:PTGX) investors will be delighted, with the company turning in some strong numbers with its latest results. The results were impressive, with revenues of US$60m exceeding analyst forecasts by 100%, and statutory losses of US$1.39 were likewise much smaller than the analysts had forecast. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
View our latest analysis for Protagonist Therapeutics
Taking into account the latest results, the consensus forecast from Protagonist Therapeutics' six analysts is for revenues of US$207.5m in 2024. This reflects a huge 246% improvement in revenue compared to the last 12 months. Earnings are expected to improve, with Protagonist Therapeutics forecast to report a statutory profit of US$0.79 per share. Before this earnings announcement, the analysts had been modelling revenues of US$117.5m and losses of US$0.83 per share in 2024. It looks like there's been a definite improvement in business conditions, with a revenue upgrade expected to lead to profitability sooner than previously forecast.
Althoughthe analysts have upgraded their earnings estimates, there was no change to the consensus price target of US$43.00, suggesting that the forecast performance does not have a long term impact on the company's valuation. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic Protagonist Therapeutics analyst has a price target of US$52.00 per share, while the most pessimistic values it at US$37.00. 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.
Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. It's clear from the latest estimates that Protagonist Therapeutics' rate of growth is expected to accelerate meaningfully, with the forecast 246% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 14% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 17% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Protagonist Therapeutics is expected to grow much faster than its industry.
The Bottom Line
The most important thing to take away is that the analysts now expect Protagonist Therapeutics to become profitable next year, compared to previous expectations that it would report a loss. Happily, they also upgraded their revenue estimates, and are forecasting them to grow faster 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.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Protagonist Therapeutics going out to 2026, and you can see them free on our platform here.
That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 1 warning sign with Protagonist Therapeutics , and understanding this should be part of your investment process.
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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.
