Yahoo Finance Cosmo Pharmaceuticals N.V. Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now
Cosmo Pharmaceuticals N.V. (VTX:COPN) just released its latest annual report and things are not looking great. The analysts look to have been far too optimistic in the lead-up to these results, with revenues of (€97m) coming in 30% below what they had expected. Statutory earnings per share of €0.071 fell 90% short. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
See our latest analysis for Cosmo Pharmaceuticals
Taking into account the latest results, the most recent consensus for Cosmo Pharmaceuticals from five analysts is for revenues of €209.6m in 2024. If met, it would imply a substantial 117% increase on its revenue over the past 12 months. Per-share earnings are expected to surge 4,469% to €3.26. Before this earnings report, the analysts had been forecasting revenues of €160.0m and earnings per share (EPS) of €3.44 in 2024. While revenue forecasts have increased substantially, the analysts are a little more pessimistic on earnings, suggesting that the growth does not come without cost.
Curiously, the consensus price target rose 13% to CHF90.09. We can only conclude that the forecast revenue growth is expected to offset the impact of the expected fall in earnings. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on Cosmo Pharmaceuticals, with the most bullish analyst valuing it at CHF110 and the most bearish at CHF69.02 per share. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.
Of course, another way to look at these forecasts is to place them into context against the industry itself. It's clear from the latest estimates that Cosmo Pharmaceuticals' rate of growth is expected to accelerate meaningfully, with the forecast 117% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 13% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 3.1% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Cosmo Pharmaceuticals is expected to grow much faster than its 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. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. 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. We have forecasts for Cosmo Pharmaceuticals going out to 2026, and you can see them free on our platform here.
We don't want to rain on the parade too much, but we did also find 1 warning sign for Cosmo Pharmaceuticals that you need to be mindful 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.
