What You Need To Know About The Marinus Pharmaceuticals, Inc. (NASDAQ:MRNS) Analyst Downgrade Today
Today is shaping up negative for Marinus Pharmaceuticals, Inc. (NASDAQ:MRNS) shareholders, with the analysts delivering a substantial negative revision to this year's forecasts. There was a fairly draconian cut to their revenue estimates, perhaps an implicit admission that previous forecasts were much too optimistic.
Following the downgrade, the current consensus from Marinus Pharmaceuticals' nine analysts is for revenues of US$44m in 2022 which - if met - would reflect a huge 60% increase on its sales over the past 12 months. The loss per share is anticipated to greatly reduce in the near future, narrowing 26% to US$2.12. Yet prior to the latest estimates, the analysts had been forecasting revenues of US$59m and losses of US$2.13 per share in 2022. So there's been quite a change-up of views after the recent consensus updates, with the analysts making a serious cut to their revenue forecasts while also making no real change to the loss per share numbers.
See our latest analysis for Marinus Pharmaceuticals
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Marinus Pharmaceuticals' past performance and to peers in the same industry. The analysts are definitely expecting Marinus Pharmaceuticals' growth to accelerate, with the forecast 156% annualised growth to the end of 2022 ranking favourably alongside historical growth of 92% 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 3.8% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Marinus Pharmaceuticals is expected to grow much faster than its industry.
The Bottom Line
Unfortunately, analysts also downgraded their revenue estimates, although our data indicates revenues are expected to perform better than the wider market. Given the stark change in sentiment, we'd understand if investors became more cautious on Marinus Pharmaceuticals after today.
As you can see, the analysts clearly aren't bullish, and there might be good reason for that. We've identified some potential issues with Marinus Pharmaceuticals' financials, such as a short cash runway. Learn more, and discover the 1 other flag we've identified, for 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 downgrading 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.
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