Newsflash: Ocular Therapeutix, Inc. (NASDAQ:OCUL) Analysts Have Been Trimming Their Revenue Forecasts
The latest analyst coverage could presage a bad day for Ocular Therapeutix, Inc. (NASDAQ:OCUL), with the analysts making across-the-board cuts to their statutory estimates that might leave shareholders a little shell-shocked. 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 latest consensus from Ocular Therapeutix's seven analysts is for revenues of US$43m in 2021, which would reflect a major 94% improvement in sales compared to the last 12 months. Losses are predicted to fall substantially, shrinking 67% to US$0.64. However, before this estimates update, the consensus had been expecting revenues of US$52m and US$0.64 per share in losses. 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.
Check out our latest analysis for Ocular Therapeutix
One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. The analysts are definitely expecting Ocular Therapeutix's growth to accelerate, with the forecast 142% annualised growth to the end of 2021 ranking favourably alongside historical growth of 56% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 4.3% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Ocular Therapeutix 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 Ocular Therapeutix after today.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Ocular Therapeutix going out to 2025, and you can see them 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.
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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