US$16.33: That's What Analysts Think Revance Therapeutics, Inc. (NASDAQ:RVNC) Is Worth After Its Latest Results
Revance Therapeutics, Inc. (NASDAQ:RVNC) investors will be delighted, with the company turning in some strong numbers with its latest results. Revance Therapeutics beat expectations with revenues of US$234m arriving 3.4% ahead of forecasts. The company also reported a statutory loss of US$3.83, 3.7% smaller than was expected. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
Check out our latest analysis for Revance Therapeutics
After the latest results, the eleven analysts covering Revance Therapeutics are now predicting revenues of US$282.8m in 2024. If met, this would reflect a sizeable 21% improvement in revenue compared to the last 12 months. Losses are predicted to fall substantially, shrinking 44% to US$2.07. Before this latest report, the consensus had been expecting revenues of US$294.6m and US$2.02 per share in losses. Overall it looks as though the analysts are negative in this update. Although revenue forecasts held steady, the consensus also made a modest increase to to its losses per share forecasts.
The average price target fell 18% to US$16.33, implicitly signalling that lower earnings per share are a leading indicator for Revance Therapeutics' valuation. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values Revance Therapeutics at US$32.00 per share, while the most bearish prices it at US$6.00. So we wouldn't be assigning too much credibility to analyst price targets in this case, because there are clearly some widely different views on what kind of performance this business can generate. With this in mind, we wouldn't rely too heavily the consensus price target, as it is just an average and analysts clearly have some deeply divergent views on the business.
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. We would highlight that Revance Therapeutics' revenue growth is expected to slow, with the forecast 21% annualised growth rate until the end of 2024 being well below the historical 66% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 9.0% annually. So it's pretty clear that, while Revance Therapeutics' revenue growth is expected to slow, it's still expected to grow faster than the industry itself.
The Bottom Line
The most important thing to take away is that the analysts increased their loss per share estimates for next year. They also downgraded Revance Therapeutics' revenue estimates, but industry data suggests that it is expected to grow faster than the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Revance Therapeutics' future valuation.
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 Revance Therapeutics analysts - going out to 2026, and you can see them free on our platform here.
Don't forget that there may still be risks. For instance, we've identified 4 warning signs for Revance Therapeutics (1 is potentially serious) you should be aware of.
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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.
