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Results: Tarsus Pharmaceuticals, Inc. Exceeded Expectations And The Consensus Has Updated Its Estimates

Shareholders of Tarsus Pharmaceuticals, Inc. (NASDAQ:TARS) will be pleased this week, given that the stock price is up 11% to US$25.00 following its latest quarterly results. Revenues beat expectations by 386%, and sales of US$22m were sufficient to generate a statutory profit of US$0.29 - a pleasant surprise given that the analysts were forecasting a loss! 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Tarsus Pharmaceuticals after the latest results.

Check out our latest analysis for Tarsus Pharmaceuticals

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Taking into account the latest results, the current consensus from Tarsus Pharmaceuticals' four analysts is for revenues of US$64.4m in 2021, which would reflect a meaningful 16% increase on its sales over the past 12 months. Per-share losses are predicted to creep up to US$0.33. Before this latest report, the consensus had been expecting revenues of US$44.3m and US$0.94 per share in losses. So there's been quite a change-up of views after the recent consensus updates, with the analysts making a sizeable increase to their revenue forecasts while also reducing the estimated loss as the business grows towards breakeven.

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The consensus price target rose 5.1% to US$53.80, with the analysts encouraged by the higher revenue and lower forecast losses for next year. 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 Tarsus Pharmaceuticals, with the most bullish analyst valuing it at US$67.00 and the most bearish at US$45.00 per share. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Tarsus Pharmaceuticals shareholders.

The Bottom Line

The most important thing to take away is that the analysts reconfirmed their loss per share estimates for next year. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Tarsus Pharmaceuticals going out to 2023, and you can see them free on our platform here..

Plus, you should also learn about the 3 warning signs we've spotted with Tarsus Pharmaceuticals (including 1 which is concerning) .

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.