Yahoo Finance TherapeuticsMD, Inc. Yearly Results Just Came Out: Here's What Analysts Are Forecasting For Next Year
TherapeuticsMD, Inc. (NASDAQ:TXMD) just released its latest annual results and things are looking bullish. The overall earnings picture was okay, with revenues of US$50m beating expectations by 20%. Statutory losses were US$0.72 per share, only marginally better than what analysts had forecast. This is an important time for investors, as they can track a company's performance in its report, look at what top analysts are forecasting for next year, and see if there has been any change to expectations for the business. With this in mind, we've gathered the latest statutory forecasts to see what analysts are expecting for next year.
Check out our latest analysis for TherapeuticsMD
Following the latest results, TherapeuticsMD's nine analysts are now forecasting revenues of US$97.1m in 2020. This would be a substantial 96% improvement in sales compared to the last 12 months. Statutory losses are expected to increase substantially, hitting US$0.64. per share. Yet prior to the latest earnings, analysts had been forecasting revenues of US$100.5m and losses of US$0.55 per share in 2020. From this we can that analyst sentiment has definitely become more bearish after the latest results, leading to lower revenue forecasts and a real cut to earnings per share estimates.
The average analyst price target was broadly unchanged at US$8.25, perhaps implicitly signalling that the weaker earnings outlook is not expected to have a long-term impact on the valuation. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic TherapeuticsMD analyst has a price target of US$16.00 per share, while the most pessimistic values it at US$2.00. So we wouldn't be assigning too much credibility to analyst price targets in this case, because there are clearly some widely different views on what kind of performance this business can generate. As a result it might not be possible to derive much meaning from the consensus price target, which is after all just an average of this wide range of estimates.
Further, we can compare these estimates to past performance, and see how TherapeuticsMD forecasts compare to the wider market's forecast performance. It's clear from the latest estimates that TherapeuticsMD's rate of growth is expected to accelerate meaningfully, with forecast 96% revenue growth noticeably faster than its historical growth of 11%p.a. over the past five years. Compare this with other companies in the same market, which are forecast to grow their revenue 5.3% next year. It seems obvious that, while the growth outlook is brighter than the recent past, analysts also expect TherapeuticsMD to grow faster than the wider market.
The Bottom Line
The highlight for us was that the consensus reduced its estimated losses next year, perhaps suggesting TherapeuticsMD is moving incrementally towards profitability. Regrettably, they also downgraded their revenue estimates, but the latest forecasts still imply the business will grow faster than the wider market. The consensus price target held steady at US$8.25, with the latest estimates not enough to have an impact on analysts' estimated valuations.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple TherapeuticsMD analysts - going out to 2024, and you can see them free on our platform here.
You can also view our analysis of TherapeuticsMD's balance sheet, and whether we think TherapeuticsMD is carrying too much debt, for free on our platform here.
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