Industry Analysts Just Made A Captivating Upgrade To Their Albireo Pharma, Inc. (NASDAQ:ALBO) Revenue Forecasts
Albireo Pharma, Inc. (NASDAQ:ALBO) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's forecasts. The analysts have sharply increased their revenue numbers, with a view that Albireo Pharma will make substantially more sales than they'd previously expected.
Following the upgrade, the current consensus from Albireo Pharma's eight analysts is for revenues of US$17m in 2021 which - if met - would reflect a huge 42% increase on its sales over the past 12 months. Per-share losses are expected to see a sharp uptick, reaching US$7.43. Yet before this consensus update, the analysts had been forecasting revenues of US$14m and losses of US$8.03 per share in 2021. So there's been quite a change-up of views after the recent consensus updates, with the analysts making a sizeable increase to their revenue forecasts while also reducing the estimated loss as the business grows towards breakeven.
See our latest analysis for Albireo Pharma
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Albireo Pharma's past performance and to peers in the same industry. The analysts are definitely expecting Albireo Pharma's growth to accelerate, with the forecast 42% annualised growth to the end of 2021 ranking favourably alongside historical growth of 2.5% per annum 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 19% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Albireo Pharma to grow faster than the wider industry.
The Bottom Line
The most important thing here is that analysts reduced their loss per share estimates for this year, reflecting increased optimism around Albireo Pharma's prospects. They also upgraded their revenue estimates for this year, and sales are expected to grow faster than the wider market. Seeing the dramatic upgrade to this year's forecasts, it might be time to take another look at Albireo Pharma.
Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. We have estimates - from multiple Albireo Pharma analysts - going out to 2025, and you can see them free on our platform here.
Another way to search for interesting companies that could be reaching an inflection point is to track whether management are buying or selling, with our free list of growing companies that insiders are buying.
This article by Simply Wall St is general in nature. 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.
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