Analysts' Revenue Estimates For Arcutis Biotherapeutics, Inc. (NASDAQ:ARQT) Are Surging Higher

Arcutis Biotherapeutics, Inc. (NASDAQ:ARQT) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's statutory forecasts. The revenue forecast for this year has experienced a facelift, with the analysts now much more optimistic on its sales pipeline.

Following the upgrade, the latest consensus from Arcutis Biotherapeutics' seven analysts is for revenues of US$164m in 2024, which would reflect a huge 55% improvement in sales compared to the last 12 months. Before the latest update, the analysts were foreseeing US$117m of revenue in 2024. The consensus has definitely become more optimistic, showing a great increase in revenue forecasts.

Check out our latest analysis for Arcutis Biotherapeutics

The consensus price target rose 5.6% to US$19.00, with the analysts clearly more optimistic about Arcutis Biotherapeutics' prospects following this update.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Arcutis Biotherapeutics' past performance and to peers in the same industry. We can infer from the latest estimates that forecasts expect a continuation of Arcutis Biotherapeutics'historical trends, as the 79% annualised revenue growth to the end of 2024 is roughly in line with the 98% annual revenue 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 18% per year. So it's pretty clear that Arcutis Biotherapeutics is forecast to grow substantially faster than its industry.

The Bottom Line

The most important thing to take away from this upgrade is that analysts lifted their revenue estimates for this year. They're also forecasting more rapid revenue growth than the wider market. There was also a nice increase in the price target, with analysts apparently feeling that the intrinsic value of the business is improving. Seeing the dramatic upgrade to this year's forecasts, it might be time to take another look at Arcutis Biotherapeutics.

Analysts are clearly in love with Arcutis Biotherapeutics at the moment, but before diving in - you should be aware that we've identified some warning flags with the business, such as major dilution from new stock issuance in the past year. You can learn more, and discover the 2 other flags we've identified, for 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 upgrading 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.