Yahoo Finance Harpoon Therapeutics, Inc. (NASDAQ:HARP) Analysts Are Cutting Their Estimates: Here's What You Need To Know
It's been a pretty great week for Harpoon Therapeutics, Inc. (NASDAQ:HARP) shareholders, with its shares surging 14% to US$16.54 in the week since its latest third-quarter results. It was a moderately negative result overall - revenue fell 9.4% short of analyst estimates at US$3.9m, and statutory losses were in line with analyst expectations, at US$0.53 per share. 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. 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 Harpoon Therapeutics
Taking into account the latest results, the consensus forecast from Harpoon Therapeutics' six analysts is for revenues of US$22.0m in 2021, which would reflect a substantial 81% improvement in sales compared to the last 12 months. Losses are expected to hold steady at around US$2.15. Yet prior to the latest earnings, the analysts had been forecasting revenues of US$23.7m and losses of US$2.03 per share in 2021. Overall it looks as though the analysts are negative in this update. Although sales forecasts held steady, the consensus also made a to its losses per share forecasts.
The average price target was broadly unchanged at US$31.63, perhaps implicitly signalling that the weaker earnings outlook is not expected to have a long-term impact on the valuation. 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. The most optimistic Harpoon Therapeutics analyst has a price target of US$38.00 per share, while the most pessimistic values it at US$25.00. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Harpoon Therapeutics' past performance and to peers in the same industry. It's clear from the latest estimates that Harpoon Therapeutics' rate of growth is expected to accelerate meaningfully, with the forecast 81% revenue growth noticeably faster than its historical growth of 60%p.a. over the past three years. Compare this with other companies in the same industry, which are forecast to grow their revenue 20% next year. Factoring in the forecast acceleration in revenue, it's pretty clear that Harpoon Therapeutics is expected to grow much faster than its industry.
The Bottom Line
The most important thing to note is the forecast of increased losses next year, suggesting all may not be well at Harpoon Therapeutics. They also downgraded their revenue estimates, although industry data suggests that Harpoon Therapeutics' revenues are expected to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.
With that in mind, we wouldn't be too quick to come to a conclusion on Harpoon Therapeutics. Long-term earnings power is much more important than next year's profits. We have forecasts for Harpoon Therapeutics going out to 2024, and you can see them free on our platform here.
It is also worth noting that we have found 4 warning signs for Harpoon Therapeutics (1 is significant!) that you need to take into consideration.
This article by Simply Wall St is general in nature. 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.
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