Innate Pharma S.A. (EPA:IPH) Annual Results: Here's What Analysts Are Forecasting For This Year

Innate Pharma S.A. (EPA:IPH) just released its latest annual results and things are looking bullish. The results were impressive, with revenues of €62m exceeding analyst forecasts by 42%, and statutory losses of €0.09 were likewise much smaller than the analysts had forecast. 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 thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

Check out our latest analysis for Innate Pharma

Following the recent earnings report, the consensus from six analysts covering Innate Pharma is for revenues of €52.3m in 2024. This implies a considerable 15% decline in revenue compared to the last 12 months. Losses are forecast to balloon 487% to €0.55 per share. Before this latest report, the consensus had been expecting revenues of €47.9m and €0.15 per share in losses. So it's pretty clear the analysts have mixed opinions on Innate Pharma even after this update; although they upped their revenue numbers, it came at the cost of a sizeable expansion in per-share losses.

There was no major change to the consensus price target of €6.32, with growing revenues seemingly enough to offset the concern of growing losses. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. The most optimistic Innate Pharma analyst has a price target of €8.40 per share, while the most pessimistic values it at €2.50. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Innate Pharma's past performance and to peers in the same industry. We would also point out that the forecast 15% annualised revenue decline to the end of 2024 is roughly in line with the historical trend, which saw revenues shrink 17% annually 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 revenue grow 40% per year. So while a broad number of companies are forecast to grow, unfortunately Innate Pharma is expected to see its revenue affected worse than other companies in the industry.

The Bottom Line

The most important thing to take away is that the analysts increased their loss per share estimates for next year. Fortunately, they also upgraded their revenue estimates, although our data indicates it is expected to 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 in mind, we wouldn't be too quick to come to a conclusion on Innate Pharma. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Innate Pharma going out to 2026, and you can see them free on our platform here..

That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 1 warning sign with Innate Pharma , and understanding this should be part of your investment process.

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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.