Pharma Mar, S.A. (BME:PHM) Consensus Forecasts Have Become A Little Darker Since Its Latest Report

Pharma Mar, S.A. (BME:PHM) last week reported its latest third-quarter results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. Overall the results were a little better than the analysts were expecting, with revenues beating forecasts by 6.5%to hit €36m. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

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Following the latest results, Pharma Mar's five analysts are now forecasting revenues of €265.5m in 2026. This would be a major 48% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to shoot up 143% to €4.80. Yet prior to the latest earnings, the analysts had been anticipated revenues of €285.3m and earnings per share (EPS) of €5.28 in 2026. The analysts are less bullish than they were before these results, given the reduced revenue forecasts and the small dip in earnings per share expectations.

Check out our latest analysis for Pharma Mar

The analysts made no major changes to their price target of €105, suggesting the downgrades are not expected to have a long-term impact on Pharma Mar's valuation. 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. Currently, the most bullish analyst values Pharma Mar at €120 per share, while the most bearish prices it at €75.00. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

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. One thing stands out from these estimates, which is that Pharma Mar is forecast to grow faster in the future than it has in the past, with revenues expected to display 37% annualised growth until the end of 2026. If achieved, this would be a much better result than the 8.1% annual decline over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue grow 13% per year. So it looks like Pharma Mar is expected to grow faster than its competitors, at least for a while.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Pharma Mar. They also downgraded Pharma Mar's revenue estimates, but industry data suggests that it is expected to grow faster than the wider industry. The consensus price target held steady at €105, with the latest estimates not enough to have an impact on their price targets.

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 Pharma Mar going out to 2027, and you can see them free on our platform here..

And what about risks? Every company has them, and we've spotted 1 warning sign for Pharma Mar 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.