Knight Therapeutics Inc. (TSE:GUD) Just Reported Earnings, And Analysts Cut Their Target Price

Shareholders might have noticed that Knight Therapeutics Inc. (TSE:GUD) filed its quarterly result this time last week. The early response was not positive, with shares down 6.9% to CA$5.26 in the past week. Revenues of CA$92m beat analyst forecasts by3.2%, while the business broke even in terms of statutory earnings per share (EPS). 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

See our latest analysis for Knight Therapeutics

Following the latest results, Knight Therapeutics' six analysts are now forecasting revenues of CA$359.2m in 2025. This would be a credible 3.0% improvement in revenue compared to the last 12 months. Knight Therapeutics is also expected to turn profitable, with statutory earnings of CA$0.11 per share. Yet prior to the latest earnings, the analysts had been anticipated revenues of CA$370.7m and earnings per share (EPS) of CA$0.14 in 2025. From this we can that sentiment has definitely become more bearish after the latest results, leading to lower revenue forecasts and a pretty serious reduction to earnings per share estimates.

The consensus price target fell 5.8% to CA$7.10, with the weaker earnings outlook clearly leading valuation estimates. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on Knight Therapeutics, with the most bullish analyst valuing it at CA$9.00 and the most bearish at CA$6.10 per share. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that Knight Therapeutics' revenue growth is expected to slow, with the forecast 2.4% annualised growth rate until the end of 2025 being well below the historical 25% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 11% per year. Factoring in the forecast slowdown in growth, it seems obvious that Knight Therapeutics is also expected to grow slower than other industry participants.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Knight Therapeutics. Unfortunately, they also downgraded their revenue estimates, and our data indicates underperformance compared to the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for Knight Therapeutics going out to 2026, and you can see them free on our platform here..

Even so, be aware that Knight Therapeutics is showing 1 warning sign in our investment analysis , you should know about...

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

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.