Analyst Estimates: Here's What Brokers Think Of NovoCure Limited (NASDAQ:NVCR) After Its Third-Quarter Report

NovoCure Limited (NASDAQ:NVCR) just released its latest quarterly results and things are looking bullish. Revenues beat expectations coming in atUS$155m, ahead of estimates by 7.7%. Statutory losses were somewhat smaller thanthe analysts expected, coming in at US$0.28 per share. 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 NovoCure after the latest results.

See our latest analysis for NovoCure

After the latest results, the eight analysts covering NovoCure are now predicting revenues of US$622.8m in 2025. If met, this would reflect a modest 7.8% improvement in revenue compared to the last 12 months. Losses are expected to increase slightly, to US$1.49 per share. Before this earnings announcement, the analysts had been modelling revenues of US$617.1m and losses of US$1.41 per share in 2025. Overall it looks as though the analysts were a bit mixed on the latest consensus updates. Although revenue forecasts held steady, the consensus also made a modest increase to its losses per share forecasts.

The consensus price target held steady at US$26.71, seemingly implying that the higher forecast losses are not expected to have a long term impact on the company's valuation. 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 NovoCure analyst has a price target of US$40.00 per share, while the most pessimistic values it at US$18.00. 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.

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. We can infer from the latest estimates that forecasts expect a continuation of NovoCure'shistorical trends, as the 6.2% annualised revenue growth to the end of 2025 is roughly in line with the 6.9% 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 8.3% per year. So although NovoCure 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. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that NovoCure's revenue is expected to perform worse than the wider industry. The consensus price target held steady at US$26.71, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on NovoCure. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple NovoCure analysts - going out to 2026, and you can see them free on our platform here.

Before you take the next step you should know about the 1 warning sign for NovoCure that we have uncovered.

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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.