Earnings Update: AnaptysBio, Inc. (NASDAQ:ANAB) Just Reported And Analysts Are Boosting Their Estimates

There's been a notable change in appetite for AnaptysBio, Inc. (NASDAQ:ANAB) shares in the week since its first-quarter report, with the stock down 12% to US$23.41. Revenues were 81% better than analyst models forecast, at US$7.2m. Perhaps unsurprisingly, statutory losses were also slightly larger than expected, at US$1.64 per share, reflecting the higher costs which were likely incurred in generating that revenue. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

See our latest analysis for AnaptysBio

Taking into account the latest results, the most recent consensus for AnaptysBio from six analysts is for revenues of US$28.3m in 2024. If met, it would imply a substantial 23% increase on its revenue over the past 12 months. Losses are expected to hold steady at around US$5.95. Before this latest report, the consensus had been expecting revenues of US$17.4m and US$6.28 per share in losses. 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$43.67, 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 AnaptysBio analyst has a price target of US$80.00 per share, while the most pessimistic values it at US$20.00. We would probably assign less value to the analyst forecasts in this situation, because such a wide range of estimates could imply that the future of this business is difficult to value accurately. With this in mind, we wouldn't rely too heavily the consensus price target, as it is just an average and analysts clearly have some deeply divergent views on the 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. For example, we noticed that AnaptysBio's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 32% growth to the end of 2024 on an annualised basis. That is well above its historical decline of 0.5% a year 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 18% per year. So it looks like AnaptysBio is expected to grow faster than its competitors, at least for a while.

The Bottom Line

The most obvious conclusion is that the analysts made no changes to their forecasts for a loss next year. Happily, they also upgraded their revenue estimates, and are forecasting them to grow faster 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 said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple AnaptysBio analysts - going out to 2026, and you can see them free on our platform here.

Don't forget that there may still be risks. For instance, we've identified 5 warning signs for AnaptysBio (1 is a bit unpleasant) you should be aware of.

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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.