Yahoo Finance Analysts Have Lowered Expectations For Puma Biotechnology, Inc. (NASDAQ:PBYI) After Its Latest Results
Last week, you might have seen that Puma Biotechnology, Inc. (NASDAQ:PBYI) released its first-quarter result to the market. The early response was not positive, with shares down 3.2% to US$4.86 in the past week. It looks like weak result overall, with ongoing losses and revenues of US$44m falling short of analyst predictions. The losses were a relative bright spot though, with a per-share (statutory) loss of US$0.10 being 54% smaller than what the analysts had presumed. 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've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
See our latest analysis for Puma Biotechnology
After the latest results, the consensus from Puma Biotechnology's two analysts is for revenues of US$219.0m in 2024, which would reflect a small 3.4% decline in revenue compared to the last year of performance. Statutory earnings per share are forecast to dive 24% to US$0.24 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$230.6m and earnings per share (EPS) of US$0.26 in 2024. It's pretty clear that pessimism has reared its head after the latest results, leading to a weaker revenue outlook and a small dip in earnings per share estimates.
It'll come as no surprise then, to learn that the analysts have cut their price target 7.1% to US$4.33.
Of course, another way to look at these forecasts is to place them into context against the industry itself. One thing that stands out from these estimates is that revenues are expected to keep falling until the end of 2024, roughly in line with the historical decline of 4.3% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue grow 18% per year. So it's pretty clear that, while it does have declining revenues, the analysts also expect Puma Biotechnology to suffer worse than the wider industry.
The Bottom Line
The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. 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. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.
Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have analyst estimates for Puma Biotechnology going out as far as 2026, and you can see them free on our platform here.
You should always think about risks though. Case in point, we've spotted 3 warning signs for Puma Biotechnology you should be aware of, and 1 of them can't be ignored.
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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.
