Analysts Just Slashed Their Assembly Biosciences, Inc. (NASDAQ:ASMB) EPS Numbers

Market forces rained on the parade of Assembly Biosciences, Inc. (NASDAQ:ASMB) shareholders today, when the analysts downgraded their forecasts for next year. Both revenue and earnings per share (EPS) forecasts went under the knife, suggesting the analysts have soured majorly on the business.

Following the downgrade, the current consensus from Assembly Biosciences' dual analysts is for revenues of US$33m in 2025 which - if met - would reflect a solid 17% increase on its sales over the past 12 months. Per-share losses are expected to see a sharp uptick, reaching US$7.65. Yet before this consensus update, the analysts had been forecasting revenues of US$38m and losses of US$6.95 per share in 2025. 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 expecting losses per share to increase.

Check out our latest analysis for Assembly Biosciences

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. One thing stands out from these estimates, which is that Assembly Biosciences is forecast to grow faster in the future than it has in the past, with revenues expected to display 13% annualised growth until the end of 2025. If achieved, this would be a much better result than the 34% annual decline 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 revenue grow 21% per year. Although Assembly Biosciences' revenues are expected to improve, it seems that the analysts are still bearish on the business, forecasting it to grow slower than the broader industry.

The Bottom Line

The most important thing to take away is that analysts increased their loss per share estimates for next year. Unfortunately analysts also downgraded their revenue estimates, and industry data suggests that Assembly Biosciences' revenues are expected to grow slower than the wider market. Given the serious cut to next year's outlook, it's clear that analysts have turned more bearish on Assembly Biosciences, and we wouldn't blame shareholders for feeling a little more cautious themselves.

There might be good reason for analyst bearishness towards Assembly Biosciences, like dilutive stock issuance over the past year. Learn more, and discover the 3 other concerns we've identified, for free on our platform here.

Another way to search for interesting companies that could be reaching an inflection point is to track whether management are buying or selling, with our free list of growing companies backed by insiders.

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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.