Yahoo Finance Insmed Incorporated (NASDAQ:INSM) First-Quarter Results: Here's What Analysts Are Forecasting For This Year
As you might know, Insmed Incorporated (NASDAQ:INSM) recently reported its quarterly numbers. The results weren't stellar - revenue fell 4.1% short of analyst estimates at US$76m, although statutory losses were a relative bright spot. The per-share loss was US$1.06, 12% smaller than the analysts were expecting prior to the result. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
See our latest analysis for Insmed
Taking into account the latest results, the consensus forecast from Insmed's 16 analysts is for revenues of US$351.8m in 2024. This reflects a notable 12% improvement in revenue compared to the last 12 months. The loss per share is expected to ameliorate slightly, reducing to US$4.60. Yet prior to the latest earnings, the analysts had been forecasting revenues of US$356.7m and losses of US$4.61 per share in 2024.
As a result there was no major change to the consensus price target of US$44.56, implying that the business is trading roughly in line with expectations despite ongoing losses. 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 Insmed at US$56.00 per share, while the most bearish prices it at US$35.00. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.
One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We would highlight that Insmed's revenue growth is expected to slow, with the forecast 16% annualised growth rate until the end of 2024 being well below the historical 24% p.a. growth over the last five years. Compare this to the 579 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 19% per year. Factoring in the forecast slowdown in growth, it looks like Insmed is forecast to grow at about the same rate as 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. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. The consensus price target held steady at US$44.56, with the latest estimates not enough to have an impact on their price targets.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Insmed going out to 2026, and you can see them free on our platform here..
However, before you get too enthused, we've discovered 4 warning signs for Insmed (2 make us uncomfortable!) that 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.
