Here's What Analysts Are Forecasting For Xeris Biopharma Holdings, Inc. (NASDAQ:XERS) After Its Annual Results
There's been a major selloff in Xeris Biopharma Holdings, Inc. (NASDAQ:XERS) shares in the week since it released its full-year report, with the stock down 26% to US$2.35. The statutory results were mixed overall, with revenues of US$164m in line with analyst forecasts, but losses of US$0.45 per share, some 3.7% larger than the analysts were predicting. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
Check out our latest analysis for Xeris Biopharma Holdings
Following the latest results, Xeris Biopharma Holdings' five analysts are now forecasting revenues of US$185.0m in 2024. This would be a decent 13% improvement in revenue compared to the last 12 months. Losses are expected to be contained, narrowing 11% from last year to US$0.39. Before this latest report, the consensus had been expecting revenues of US$184.1m and US$0.27 per share in losses. While this year's revenue estimates held steady, there was also a sizeable expansion in loss per share expectations, suggesting the consensus has a bit of a mixed view on the stock.
The consensus price target held steady at US$4.70, seemingly implying that the higher forecast losses are not expected to have a long term impact on the company's valuation. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. There are some variant perceptions on Xeris Biopharma Holdings, with the most bullish analyst valuing it at US$6.00 and the most bearish at US$4.00 per share. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Xeris Biopharma Holdings shareholders.
Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that Xeris Biopharma Holdings' revenue growth is expected to slow, with the forecast 13% annualised growth rate until the end of 2024 being well below the historical 63% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 9.0% per year. Even after the forecast slowdown in growth, it seems obvious that Xeris Biopharma Holdings is also expected to grow faster than the wider industry.
The Bottom Line
The most important thing to note is the forecast of increased losses next year, suggesting all may not be well at Xeris Biopharma Holdings. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at US$4.70, with the latest estimates not enough to have an impact on their price targets.
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. We have forecasts for Xeris Biopharma Holdings going out to 2026, and you can see them free on our platform here.
Even so, be aware that Xeris Biopharma Holdings is showing 4 warning signs in our investment analysis , and 2 of those are concerning...
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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.
