Earnings Miss: Newron Pharmaceuticals S.p.A. Missed EPS By 53% And Analysts Are Revising Their Forecasts

There's been a major selloff in Newron Pharmaceuticals S.p.A. (VTX:NWRN) shares in the week since it released its yearly report, with the stock down 23% to CHF6.15. Results were mixed, with revenues of €51m exceeding expectations, even as statutory earnings per share (EPS) fell badly short. Earnings were €0.85 per share, -53% short of analyst expectations. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Newron Pharmaceuticals after the latest results.

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Following the recent earnings report, the consensus from dual analysts covering Newron Pharmaceuticals is for revenues of €11.3m in 2025. This implies a stressful 78% decline in revenue compared to the last 12 months. Earnings are expected to tip over into lossmaking territory, with the analysts forecasting statutory losses of -€1.70 per share in 2025. Before this earnings report, the analysts had been forecasting revenues of €13.5m and earnings per share (EPS) of €0.16 in 2025. There looks to have been a major change in sentiment regarding Newron Pharmaceuticals' prospects following the latest results, with a real cut to revenues and the analysts now forecasting a loss instead of a profit.

View our latest analysis for Newron Pharmaceuticals

There was no major change to the consensus price target of CHF15.32, signalling that the business is performing roughly in line with expectations, despite lower earnings per share forecasts.

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 revenue is expected to slow, with a forecast annualised decline of 78% by the end of 2025. This indicates a significant reduction from annual growth of 37% 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 3.7% per year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Newron Pharmaceuticals is expected to lag the wider industry.

The Bottom Line

The biggest low-light for us was that the forecasts for Newron Pharmaceuticals dropped from profits to a loss next year. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse than the wider 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.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have analyst estimates for Newron Pharmaceuticals going out as far as 2027, and you can see them free on our platform here.

You still need to take note of risks, for example - Newron Pharmaceuticals has 3 warning signs (and 2 which are concerning) 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.