Insmed Incorporated (NASDAQ:INSM) Just Released Its Yearly Results And Analysts Are Updating Their Estimates

Shareholders might have noticed that Insmed Incorporated (NASDAQ:INSM) filed its annual result this time last week. The early response was not positive, with shares down 7.6% to US$27.28 in the past week. Insmed reported revenues of US$305m, in line with expectations, but it unfortunately also reported (statutory) losses of US$5.34 per share, which were slightly larger than expected. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

Check out our latest analysis for Insmed

Taking into account the latest results, the most recent consensus for Insmed from 14 analysts is for revenues of US$358.9m in 2024. If met, it would imply a decent 18% increase on its revenue over the past 12 months. Losses are forecast to narrow 7.0% to US$4.69 per share. Yet prior to the latest earnings, the analysts had been forecasting revenues of US$355.9m and losses of US$4.50 per share in 2024. So it's pretty clear consensus is mixed on Insmed after the new consensus numbers; while the analysts held their revenue numbers steady, they also administered a modest increase to per-share loss expectations.

As a result, there was no major change to the consensus price target of US$43.07, with the analysts implicitly confirming that the business looks to be performing in line with expectations, despite higher forecast losses. 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 Insmed, with the most bullish analyst valuing it at US$55.00 and the most bearish at US$35.00 per share. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

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. It's pretty clear that there is an expectation that Insmed's revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 18% growth on an annualised basis. This is compared to a historical growth rate of 28% over the past five years. Compare this to the 592 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 17% 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 important thing to take away is that the analysts increased their loss per share estimates for next year. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for Insmed going out to 2026, and you can see them free on our platform here.

Plus, you should also learn about the 4 warning signs we've spotted with Insmed (including 1 which shouldn't be ignored) .

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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.