Yahoo Finance US$37.90 - That's What Analysts Think Momenta Pharmaceuticals, Inc. Is Worth After These Results
As you might know, Momenta Pharmaceuticals, Inc. (NASDAQ:MNTA) just kicked off its latest annual results with some very strong numbers. Results overall were credible, with revenues arriving 9.3% better than analyst forecasts at US$24m. Higher revenues also resulted in lower statutory losses, which were US$2.92 per share, some 9.3% smaller than analysts expected. 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. We thought readers would find it interesting to see analysts' latest (statutory) post-earnings forecasts for next year.
View our latest analysis for Momenta Pharmaceuticals
Following the recent earnings report, the consensus fromnine analysts covering Momenta Pharmaceuticals expects revenues of US$20.9m in 2020, implying a definite 12% decline in sales compared to the last 12 months. Statutory losses are forecast to balloon 32% to US$1.99 per share. Before this latest report, the consensus had been expecting revenues of US$21.0m and US$2.06 per share in losses. There was no real change to the revenue estimates, but analysts do seem more bullish on earnings, given the slight bump in earnings per share expectations following these results.
These new estimates led to the consensus price target rising 7.4% to US$37.90, with lower forecast losses suggesting things could be looking up for Momenta Pharmaceuticals. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values Momenta Pharmaceuticals at US$50.00 per share, while the most bearish prices it at US$23.00. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.
Zooming out to look at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up both against past performance, and against industry growth estimates. One obvious concern is that although revenues are forecast to continue shrinking, the expected 12% decline next year is substantially more severe than the 2.0% annual decline over the past five years. Compare this with our data on other companies (with analyst coverage) in a similar industry, which in aggregate are forecast to see their revenue decline 16% per year. It seems clear that while revenues are expected to continue declining, analysts also expect the downturn to be more severe than that of the wider market.
The Bottom Line
The most important thing to note from these estimates is that the consensus increased its forecast losses next year, suggesting all may not be well at Momenta Pharmaceuticals. On the plus side, there were no major changes to revenue estimates; although analyst forecasts imply revenues will perform worse than the wider market. There was also a nice increase in the price target, with analysts feeling that the intrinsic value of the business is improving.
Still, the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Momenta Pharmaceuticals analysts - going out to 2024, and you can see them free on our platform here.
We also provide an overview of the Momenta Pharmaceuticals Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, here.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned.
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