Earnings Update: Amylyx Pharmaceuticals, Inc. (NASDAQ:AMLX) Just Reported And Analysts Are Boosting Their Estimates

Amylyx Pharmaceuticals, Inc. (NASDAQ:AMLX) investors will be delighted, with the company turning in some strong numbers with its latest results. Revenues of US$22m beat estimates by a substantial 404% margin. Unfortunately, Amylyx Pharmaceuticals also reported a statutory loss of US$3.39 per share, which at least was smaller than the analysts expected. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

View our latest analysis for Amylyx Pharmaceuticals

After the latest results, the five analysts covering Amylyx Pharmaceuticals are now predicting revenues of US$327.7m in 2023. If met, this would reflect a major 1,374% improvement in sales compared to the last 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 87% to US$0.38. Yet prior to the latest earnings, the analysts had been forecasting revenues of US$166.6m and losses of US$1.65 per share in 2023. We can see there's definitely been a change in sentiment in this update, with the analysts administering a sizeable upgrade to this year's revenue estimates, while at the same time reducing their loss estimates.

Despite these upgrades,the analysts have not made any major changes to their price target of US$50.20, implying that their latest estimates don't have a long term impact on what they think the stock is worth. 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. The most optimistic Amylyx Pharmaceuticals analyst has a price target of US$54.00 per share, while the most pessimistic values it at US$47.00. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Amylyx Pharmaceuticals' past performance and to peers in the same industry. It's clear from the latest estimates that Amylyx Pharmaceuticals' rate of growth is expected to accelerate meaningfully, with the forecast 14x annualised revenue growth to the end of 2023 noticeably faster than its historical growth of 96% p.a. over the past three years. Compare this with other companies in the same industry, which are forecast to grow their revenue 5.1% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Amylyx Pharmaceuticals to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that the analysts reconfirmed their loss per share estimates for next year. Happily, they also upgraded their revenue estimates, and are forecasting revenues to grow faster than the wider industry. The consensus price target held steady at US$50.20, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Amylyx Pharmaceuticals going out to 2025, and you can see them free on our platform here..

Even so, be aware that Amylyx Pharmaceuticals is showing 1 warning sign in our investment analysis , 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.