Revenue Downgrade: Here's What Analysts Forecast For Basilea Pharmaceutica AG (VTX:BSLN)

Market forces rained on the parade of Basilea Pharmaceutica AG (VTX:BSLN) shareholders today, when the analysts downgraded their forecasts for this year. This report focused on revenue estimates, and it looks as though the consensus view of the business has become substantially more conservative. Shares are up 7.5% to CHF38.60 in the past week. Investors could be forgiven for changing their mind on the business following the downgrade; but it's not clear if the revised forecasts will lead to selling activity.

Following the latest downgrade, the seven analysts covering Basilea Pharmaceutica provided consensus estimates of CHF113m revenue in 2022, which would reflect a disturbing 24% decline on its sales over the past 12 months. Prior to the latest estimates, the analysts were forecasting revenues of CHF126m in 2022. The consensus view seems to have become more pessimistic on Basilea Pharmaceutica, noting the substantial drop in revenue estimates in this update.

View our latest analysis for Basilea Pharmaceutica

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. These estimates imply that sales are expected to slow, with a forecast annualised revenue decline of 24% by the end of 2022. This indicates a significant reduction from annual growth of 9.6% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 27% per year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Basilea Pharmaceutica is expected to lag the wider industry.

The Bottom Line

The most important thing to take away is that analysts cut their revenue estimates for this year. They also expect company revenue to perform worse than the wider market. Given the stark change in sentiment, we'd understand if investors became more cautious on Basilea Pharmaceutica after today.

Need some more information? We have estimates for Basilea Pharmaceutica from its seven analysts out until 2024, and you can see them free on our platform here.

Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are downgrading their estimates. So you may also wish to search this free list of stocks that insiders are buying.

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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.