Incyte Corporation (NASDAQ:INCY) Yearly Results Just Came Out: Here's What Analysts Are Forecasting For This Year
As you might know, Incyte Corporation (NASDAQ:INCY) recently reported its yearly numbers. Results were roughly in line with estimates, with revenues of US$3.7b and statutory earnings per share of US$2.65. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. 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 Incyte
Taking into account the latest results, the current consensus from Incyte's 19 analysts is for revenues of US$4.15b in 2024. This would reflect a solid 12% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to leap 34% to US$3.57. Before this earnings report, the analysts had been forecasting revenues of US$4.12b and earnings per share (EPS) of US$3.77 in 2024. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a minor downgrade to their earnings per share forecasts.
The consensus price target held steady at US$76.01, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on Incyte, with the most bullish analyst valuing it at US$92.00 and the most bearish at US$58.00 per share. 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.
Of course, another way to look at these forecasts is to place them into context against the industry itself. We can infer from the latest estimates that forecasts expect a continuation of Incyte'shistorical trends, as the 12% annualised revenue growth to the end of 2024 is roughly in line with the 14% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 17% per year. So although Incyte is expected to maintain its revenue growth rate, it's forecast to grow slower than the wider industry.
The Bottom Line
The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Incyte. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Incyte's revenue is expected to perform worse than the wider industry. The consensus price target held steady at US$76.01, 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 Incyte going out to 2026, and you can see them free on our platform here.
We also provide an overview of the Incyte Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, 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.
