Yahoo Finance Analysts Are Updating Their Apellis Pharmaceuticals, Inc. (NASDAQ:APLS) Estimates After Its First-Quarter Results
There's been a notable change in appetite for Apellis Pharmaceuticals, Inc. (NASDAQ:APLS) shares in the week since its quarterly report, with the stock down 11% to US$42.30. The results don't look great, especially considering that statutory losses grew 19% toUS$0.54 per share. Revenues of US$172,325,000 did beat expectations by 4.9%, but it looks like a bit of a cold comfort. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
Check out our latest analysis for Apellis Pharmaceuticals
Following the latest results, Apellis Pharmaceuticals' 16 analysts are now forecasting revenues of US$816.4m in 2024. This would be a substantial 56% improvement in revenue compared to the last 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 69% to US$1.07. Before this latest report, the consensus had been expecting revenues of US$795.6m and US$1.11 per share in losses. It looks like there's been a modest increase in sentiment in the recent updates, with the analysts becoming a bit more optimistic in their predictions for both revenues and losses per share.
There was no major change to the consensus price target of US$81.38, perhaps suggesting that the analysts remain concerned about ongoing losses despite the improved earnings and revenue outlook. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Apellis Pharmaceuticals, with the most bullish analyst valuing it at US$116 and the most bearish at US$50.00 per share. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.
Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. It's clear from the latest estimates that Apellis Pharmaceuticals' rate of growth is expected to accelerate meaningfully, with the forecast 81% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 48% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 18% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Apellis Pharmaceuticals to grow faster than the wider industry.
The Bottom Line
The most obvious conclusion is that the analysts made no changes to their forecasts for a loss next year. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. The consensus price target held steady at US$81.38, with the latest estimates not enough to have an impact on their price targets.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Apellis Pharmaceuticals going out to 2026, and you can see them free on our platform here.
You still need to take note of risks, for example - Apellis Pharmaceuticals has 3 warning signs we think 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.
