Earnings Update: Theratechnologies Inc. (TSE:TH) Just Reported And Analysts Are Trimming Their Forecasts

Last week saw the newest full-year earnings release from Theratechnologies Inc. (TSE:TH), an important milestone in the company's journey to build a stronger business. The statutory results were mixed overall, with revenues of US$82m in line with analyst forecasts, but losses of US$0.91 per share, some 2.1% larger than the analysts were predicting. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

See our latest analysis for Theratechnologies

Taking into account the latest results, the most recent consensus for Theratechnologies from four analysts is for revenues of US$87.9m in 2024. If met, it would imply an okay 7.5% increase on its revenue over the past 12 months. Losses are predicted to fall substantially, shrinking 25% to US$0.39. Before this latest report, the consensus had been expecting revenues of US$92.6m and US$0.35 per share in losses. While this year's revenue estimates dropped there was also a considerable increase in loss per share expectations, suggesting the consensus has a bit of a mixed view on the stock.

The average price target lifted 300% to CA$8.00, clearly signalling that the weaker revenue and EPS outlook are not expected to weigh on the stock over the longer term.

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. The period to the end of 2024 brings more of the same, according to the analysts, with revenue forecast to display 7.5% growth on an annualised basis. That is in line with its 8.9% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 60% per year. So although Theratechnologies is expected to maintain its revenue growth rate, it's forecast to grow slower than 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. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

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 Theratechnologies analysts - going out to 2026, and you can see them free on our platform here.

You should always think about risks though. Case in point, we've spotted 4 warning signs for Theratechnologies you should be aware of, and 2 of them are significant.

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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.