The Inhibrx, Inc. (NASDAQ:INBX) Second-Quarter Results Are Out And Analysts Have Published New Forecasts

·3 min read

It's been a pretty great week for Inhibrx, Inc. (NASDAQ:INBX) shareholders, with its shares surging 11% to US$31.25 in the week since its latest second-quarter results. Revenues beat expectations, with US$954k in sales being 16% above estimates. The company still lost US$0.55 per share, tracking roughly in line with expectations. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Inhibrx after the latest results.

See our latest analysis for Inhibrx


After the latest results, the consensus from Inhibrx's three analysts is for revenues of US$2.27m in 2021, which would reflect a sizeable 78% decline in sales compared to the last year of performance. Per-share losses are predicted to creep up to US$2.28. Before this earnings announcement, the analysts had been modelling revenues of US$2.20m and losses of US$2.36 per share in 2021. It looks like there's been a modest increase in sentiment in the recent updates, with the analysts becoming a bit more optimistic in their predictions for both revenues and losses per share.

Despite these upgrades,the analysts have not made any major changes to their price target of US$39.25, implying that their latest estimates don't have a long term impact on what they think the stock is worth. 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. Currently, the most bullish analyst values Inhibrx at US$44.00 per share, while the most bearish prices it at US$35.00. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Inhibrx is an easy business to forecast or the the analysts are all using similar assumptions.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that sales are expected to reverse, with a forecast 95% annualised revenue decline to the end of 2021. That is a notable change from historical growth of 1.8% over the last three years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 10% annually for the foreseeable future. It's pretty clear that Inhibrx's revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The most important thing to take away is that the analysts reconfirmed their loss per share estimates for next year. Fortunately, they also upgraded their revenue estimates, although our data indicates sales are expected to perform worse than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Inhibrx analysts - going out to 2023, and you can see them free on our platform here.

Before you take the next step you should know about the 3 warning signs for Inhibrx (1 shouldn't be ignored!) that we have uncovered.

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.

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