Growth Investors: Industry Analysts Just Upgraded Their Arvinas, Inc. (NASDAQ:ARVN) Revenue Forecasts By 13%
Celebrations may be in order for Arvinas, Inc. (NASDAQ:ARVN) shareholders, with the analysts delivering a significant upgrade to their statutory estimates for the company. The analysts have sharply increased their revenue numbers, with a view that Arvinas will make substantially more sales than they'd previously expected.
After the upgrade, the consensus from Arvinas' 17 analysts is for revenues of US$148m in 2023, which would reflect a perceptible 6.2% decline in sales compared to the last year of performance. Losses are expected to increase substantially, hitting US$6.17 per share. Yet before this consensus update, the analysts had been forecasting revenues of US$132m and losses of US$6.62 per share in 2023. We can see there's definitely been a change in sentiment in this update, with the analysts administering a sizeable upgrade to this year's revenue estimates, while at the same time reducing their loss estimates.
Check out our latest analysis for Arvinas
There was no major change to the consensus price target of US$69.56, perhaps suggesting that the analysts remain concerned about ongoing losses despite the improved earnings and revenue outlook.
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. These estimates imply that sales are expected to slow, with a forecast annualised revenue decline of 12% by the end of 2023. This indicates a significant reduction from annual growth of 41% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 7.4% annually for the foreseeable future. It's pretty clear that Arvinas' revenues are expected to perform substantially worse than the wider industry.
The Bottom Line
The highlight for us was that the consensus reduced its estimated losses this year, perhaps suggesting Arvinas is moving incrementally towards profitability. Fortunately, they also upgraded their revenue estimates, and are forecasting revenues to grow slower than the wider market. Seeing the dramatic upgrade to this year's forecasts, it might be time to take another look at Arvinas.
Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. We have estimates - from multiple Arvinas analysts - going out to 2025, and you can see them free on our platform here.
Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are upgrading their estimates. So you may also wish to search this free list of stocks that insiders are buying.
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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.
