Results: BioMarin Pharmaceutical Inc. Exceeded Expectations And The Consensus Has Updated Its Estimates

Explore BioMarin Pharmaceutical's Fair Values from the Community and select yours

BioMarin Pharmaceutical Inc. (NASDAQ:BMRN) investors will be delighted, with the company turning in some strong numbers with its latest results. It was overall a positive result, with revenues beating expectations by 8.4% to hit US$825m. BioMarin Pharmaceutical also reported a statutory profit of US$1.23, which was an impressive 48% above what the analysts had forecast. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

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Taking into account the latest results, the current consensus from BioMarin Pharmaceutical's 27 analysts is for revenues of US$3.17b in 2025. This would reflect a reasonable 3.4% increase on its revenue over the past 12 months. Statutory earnings per share are forecast to decrease 2.2% to US$3.35 in the same period. Before this earnings report, the analysts had been forecasting revenues of US$3.14b and earnings per share (EPS) of US$3.25 in 2025. So the consensus seems to have become somewhat more optimistic on BioMarin Pharmaceutical's earnings potential following these results.

See our latest analysis for BioMarin Pharmaceutical

The consensus price target was unchanged at US$96.96, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on BioMarin Pharmaceutical, with the most bullish analyst valuing it at US$122 and the most bearish at US$65.00 per share. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the BioMarin Pharmaceutical's past performance and to peers in the same industry. We would highlight that BioMarin Pharmaceutical's revenue growth is expected to slow, with the forecast 7.0% annualised growth rate until the end of 2025 being well below the historical 11% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 18% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than BioMarin Pharmaceutical.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around BioMarin Pharmaceutical's earnings potential next year. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target held steady at US$96.96, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for BioMarin Pharmaceutical going out to 2027, and you can see them free on our platform here.

We also provide an overview of the BioMarin Pharmaceutical Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, here.

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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.