EyePoint Pharmaceuticals, Inc. (NASDAQ:EYPT) Analysts Just Slashed This Year's Revenue Estimates By 22%
One thing we could say about the analysts on EyePoint Pharmaceuticals, Inc. (NASDAQ:EYPT) - 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 consensus from eight analysts covering EyePoint Pharmaceuticals is for revenues of US$34m in 2024, implying a concerning 26% decline in sales compared to the last 12 months. Losses are expected to increase substantially, hitting US$1.77 per share. Yet prior to the latest estimates, the analysts had been forecasting revenues of US$44m and losses of US$1.63 per share in 2024. So there's been quite a change-up of views after the recent consensus updates, with the analysts making a serious cut to their revenue forecasts while also expecting losses per share to increase.
View our latest analysis for EyePoint Pharmaceuticals
There was no major change to the consensus price target of US$43.89, signalling that the business is performing roughly in line with expectations, despite lower earnings per share forecasts.
Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. These estimates imply that sales are expected to slow, with a forecast annualised revenue decline of 26% by the end of 2024. This indicates a significant reduction from annual growth of 24% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 9.0% per year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - EyePoint Pharmaceuticals is expected to lag 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 EyePoint Pharmaceuticals. Regrettably, they also downgraded their revenue estimates, and the latest forecasts imply the business will grow sales slower than the wider market. Overall, given the drastic downgrade to this year's forecasts, we'd be feeling a little more wary of EyePoint Pharmaceuticals going forwards.
Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. At Simply Wall St, we have a full range of analyst estimates for EyePoint Pharmaceuticals going out to 2026, and you can see them free on our platform here.
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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.
