Spero Therapeutics, Inc. Beat Analyst Estimates: See What The Consensus Is Forecasting For This Year
It's been a good week for Spero Therapeutics, Inc. (NASDAQ:SPRO) shareholders, because the company has just released its latest annual results, and the shares gained 7.8% to US$1.79. In addition to smashing expectations with revenues of US$104m, Spero Therapeutics delivered a surprise statutory profit of US$0.43 per share, a notable improvement compared to analyst expectations of a loss. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
Check out our latest analysis for Spero Therapeutics
After the latest results, the consensus from Spero Therapeutics' twin analysts is for revenues of US$47.8m in 2024, which would reflect a painful 54% decline in revenue compared to the last year of performance. The company is forecast to report a statutory loss of US$0.95 in 2024, a sharp decline from a profit over the last year. Before this latest report, the consensus had been expecting revenues of US$50.0m and US$0.76 per share in losses. So it's pretty clear the analysts have mixed opinions on Spero Therapeutics after this update; revenues were downgraded and per-share losses expected to increase.
The average price target lifted 18% to US$7.50, clearly signalling that the weaker revenue and EPS outlook are not expected to weigh on the stock over the longer term.
Of course, another way to look at these forecasts is to place them into context against the industry itself. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 54% by the end of 2024. This indicates a significant reduction from annual growth of 48% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 18% per year. It's pretty clear that Spero Therapeutics' 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 increased their loss per share estimates for next year. Unfortunately, they also downgraded their revenue estimates, and our data indicates underperformance compared to the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At least one analyst has provided forecasts out to 2026, which can be seen for free on our platform here.
It is also worth noting that we have found 3 warning signs for Spero Therapeutics that you need to take into consideration.
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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.
