Medexus Pharmaceuticals Inc. Just Beat Earnings Expectations: Here's What Analysts Think Will Happen Next

Medexus Pharmaceuticals Inc. (TSE:MDP) just released its latest quarterly results and things are looking bullish. It was overall a positive result, with revenues beating expectations by 2.2% to hit US$27m. Medexus Pharmaceuticals reported statutory earnings per share (EPS) US$0.08, which was a notable 15% above what the analysts had forecast. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. 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 Medexus Pharmaceuticals

After the latest results, the consensus from Medexus Pharmaceuticals' five analysts is for revenues of US$104.3m in 2025, which would reflect a noticeable 4.1% decline in revenue compared to the last year of performance. Statutory earnings per share are predicted to jump 488% to US$0.26. In the lead-up to this report, the analysts had been modelling revenues of US$106.2m and earnings per share (EPS) of US$0.21 in 2025. There was no real change to the revenue estimates, but the analysts do seem more bullish on earnings, given the very substantial lift in earnings per share expectations following these results.

The consensus price target rose 5.8% to CA$3.05, suggesting that higher earnings estimates flow through to the stock's valuation as well. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Medexus Pharmaceuticals, with the most bullish analyst valuing it at CA$4.40 and the most bearish at CA$2.35 per share. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Medexus Pharmaceuticals' past performance and to peers in the same industry. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 5.5% by the end of 2025. This indicates a significant reduction from annual growth of 19% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 11% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Medexus Pharmaceuticals is expected to lag the wider industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Medexus Pharmaceuticals' earnings potential next year. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Medexus Pharmaceuticals' revenue is expected to perform worse 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.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Medexus Pharmaceuticals going out to 2027, and you can see them free on our platform here..

You still need to take note of risks, for example - Medexus Pharmaceuticals has 5 warning signs (and 1 which makes us a bit uncomfortable) we think you should know about.

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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.