Yahoo Finance News Flash: Analysts Just Made A Captivating Upgrade To Their Spectrum Pharmaceuticals, Inc. (NASDAQ:SPPI) Forecasts
Spectrum Pharmaceuticals, Inc. (NASDAQ:SPPI) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's statutory forecasts. Consensus estimates suggest investors could expect greatly increased statutory revenues and earnings per share, with the analysts modelling a real improvement in business performance. Investors have been pretty optimistic on Spectrum Pharmaceuticals too, with the stock up 19% to US$1.30 over the past week. It will be interesting to see if today's upgrade is enough to propel the stock even higher.
After the upgrade, the five analysts covering Spectrum Pharmaceuticals are now predicting revenues of US$67m in 2023. If met, this would reflect a huge 160% improvement in sales compared to the last 12 months. Losses are predicted to fall substantially, shrinking 78% to US$0.075. Yet prior to the latest estimates, the analysts had been forecasting revenues of US$55m and losses of US$0.17 per share in 2023. We can see there's definitely been a change in sentiment in this update, with the analysts administering a sizeable upgrade to this year's revenue estimates, while at the same time reducing their loss estimates.
See our latest analysis for Spectrum Pharmaceuticals
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Spectrum Pharmaceuticals' past performance and to peers in the same industry. One thing stands out from these estimates, which is that Spectrum Pharmaceuticals is forecast to grow faster in the future than it has in the past, with revenues expected to display 258% annualised growth until the end of 2023. If achieved, this would be a much better result than the 70% annual decline over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue grow 19% per year. Not only are Spectrum Pharmaceuticals' revenues expected to improve, it seems that the analysts are also expecting it to grow faster than the wider industry.
The Bottom Line
The most important thing here is that analysts reduced their loss per share estimates for this year, reflecting increased optimism around Spectrum Pharmaceuticals' prospects. They also upgraded their revenue estimates for this year, and sales are expected to grow faster than the wider market. The clear improvement in sentiment should be enough to get most shareholders feeling more optimistic about Spectrum Pharmaceuticals' future.
Better yet, Spectrum Pharmaceuticals is expected to break-even soon - within the next few years - according to analyst forecasts, which would be a momentous event for shareholders. For more information, you can click through to our free platform to learn more about these forecasts.
Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are upgrading their estimates. So you may also wish to search this free list of stocks that insiders are buying.
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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.
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