Revenue Downgrade: Here's What Analysts Forecast For Veru Inc. (NASDAQ:VERU)

The latest analyst coverage could presage a bad day for Veru Inc. (NASDAQ:VERU), with the analysts making across-the-board cuts to their statutory estimates that might leave shareholders a little shell-shocked. This report focused on revenue estimates, and it looks as though the consensus view of the business has become substantially more conservative.

Following the downgrade, the current consensus from Veru's three analysts is for revenues of US$25m in 2024 which - if met - would reflect a major 67% increase on its sales over the past 12 months. The loss per share is anticipated to greatly reduce in the near future, narrowing 53% to US$0.57. Yet before this consensus update, the analysts had been forecasting revenues of US$33m and losses of US$0.57 per share in 2024. So there's been quite a change-up of views after the recent consensus updates, with the analysts making a serious cut to their revenue forecasts while also making no real change to the loss per share numbers.

View our latest analysis for Veru

The consensus price target fell 17% to US$3.33, with the analysts clearly concerned about the weaker revenue outlook and expectation of ongoing losses.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. The analysts are definitely expecting Veru's growth to accelerate, with the forecast 51% annualised growth to the end of 2024 ranking favourably alongside historical growth of 10% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 6.8% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Veru is expected to grow much faster than its industry.

The Bottom Line

Unfortunately, analysts also downgraded their revenue estimates, although our data indicates revenues are expected to perform better than the wider market. The consensus price target fell measurably, with analysts seemingly not reassured by recent business developments, leading to a lower estimate of Veru's future valuation. Overall, given the drastic downgrade to next year's forecasts, we'd be feeling a little more wary of Veru going forwards.

After a downgrade like this, it's pretty clear that previous forecasts were too optimistic. What's more, we've spotted several possible issues with Veru's business, like a short cash runway. For more information, you can click here to discover this and the 2 other flags we've identified.

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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.