Analysts Just Slashed Their Apellis Pharmaceuticals, Inc. (NASDAQ:APLS) EPS Numbers

Market forces rained on the parade of Apellis Pharmaceuticals, Inc. (NASDAQ:APLS) shareholders today, when the analysts downgraded their forecasts for this year. Both revenue and earnings per share (EPS) estimates were cut sharply as analysts factored in the latest outlook for the business, concluding that they were too optimistic previously.

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Following the latest downgrade, Apellis Pharmaceuticals' 21 analysts currently expect revenues in 2025 to be US$773m, approximately in line with the last 12 months. Per-share losses are expected to see a sharp uptick, reaching US$1.97. However, before this estimates update, the consensus had been expecting revenues of US$861m and US$1.01 per share in losses. Ergo, there's been a clear change in sentiment, with the analysts administering a notable cut to this year's revenue estimates, while at the same time increasing their loss per share forecasts.

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The consensus price target fell 7.3% to US$39.05, with the analysts clearly concerned about the company following the weaker revenue and earnings outlook.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Apellis Pharmaceuticals' past performance and to peers in the same industry. We would highlight that sales are expected to reverse, with a forecast 0.6% annualised revenue decline to the end of 2025. That is a notable change from historical growth of 49% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 17% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Apellis Pharmaceuticals is expected to lag the wider industry.

The Bottom Line

The most important thing to take away is that analysts increased their loss per share estimates for this year. Unfortunately analysts also downgraded their revenue estimates, and industry data suggests that Apellis Pharmaceuticals' revenues are expected to grow slower than the wider market. With a serious cut to this year's expectations and a falling price target, we wouldn't be surprised if investors were becoming wary of Apellis Pharmaceuticals.

Still, the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Apellis Pharmaceuticals analysts - going out to 2027, and you can see them free on our platform here.

Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are downgrading their estimates. So you may also wish to search this free list of stocks with high insider ownership.

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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.