One Analyst's Earnings Estimates For Assertio Therapeutics, Inc. (NASDAQ:ASRT) Are Surging Higher
Assertio Therapeutics, Inc. (NASDAQ:ASRT) shareholders will have a reason to smile today, with the covering analyst making substantial upgrades to this year's forecasts. Consensus estimates suggest investors could expect greatly increased statutory revenues and earnings per share, with the analyst modelling a real improvement in business performance.
Following the latest upgrade, the single analyst covering Assertio Therapeutics provided consensus estimates of US$100m revenue in 2020, which would reflect a substantial 48% decline on its sales over the past 12 months. Losses are expected to turn into profits real soon, with the analyst forecasting US$0.23 in per-share earnings. Yet before this consensus update, the analyst had been forecasting revenues of US$89m and losses of US$0.40 per share in 2020. So we can see that this has sparked a pretty clear upgrade to expectations, with higher revenues anticipated to lead to profit sooner than previously forecast.
Check out our latest analysis for Assertio Therapeutics
Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. One more thing stood out to us about these estimates, and it's the idea that Assertio Therapeutics'decline is expected to accelerate, with revenues forecast to fall 48% next year, topping off a historical decline of 12% a year over the past five years. Compare this against analyst estimates for companies in the wider industry, which suggest that revenues (in aggregate) are expected to grow 6.3% next year. So it's pretty clear that, while it does have declining revenues, the analyst also expect Assertio Therapeutics to suffer worse than the wider industry.
The Bottom Line
The most important thing to take away from this upgrade is that the consensus now expects Assertio Therapeutics to become profitable this year. Pleasantly, the analyst also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow slower than the wider market. The clear improvement in sentiment should be enough to get most shareholders feeling more optimistic about Assertio Therapeutics' future.
Still, the long-term prospects of the business are much more relevant than next year's earnings. We have analyst estimates for Assertio Therapeutics going out as far as 2021, 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 upgrading their estimates. So you may also wish to search this free list of stocks that insiders are buying.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.
