One CASI Pharmaceuticals, Inc. (NASDAQ:CASI) Analyst Just Made A Major Cut To Next Year's Estimates

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

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After the downgrade, the consensus from CASI Pharmaceuticals' sole analyst is for revenues of US$10m in 2025, which would reflect a sizeable 67% decline in sales compared to the last year of performance. The loss per share is anticipated to greatly reduce in the near future, narrowing 24% to US$2.31. Yet prior to the latest estimates, the analyst had been forecasting revenues of US$13m and losses of US$2.07 per share in 2025. Ergo, there's been a clear change in sentiment, with the analyst administering a notable cut to this year's revenue estimates, while at the same time increasing their loss per share forecasts.

Check out our latest analysis for CASI Pharmaceuticals

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the CASI Pharmaceuticals' past performance and to peers in the same industry. These estimates imply that sales are expected to slow, with a forecast annualised revenue decline of 89% by the end of 2025. This indicates a significant reduction from annual growth of 11% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 20% per year. It's pretty clear that CASI Pharmaceuticals' revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The most important thing to take away is that the analyst increased their loss per share estimates for this year. Regrettably, they also downgraded their revenue estimates, and the latest forecasts imply the business will grow sales slower than the wider market. We wouldn't be surprised to find shareholders feeling a bit shell-shocked, after these downgrades. It looks like the analyst has become a lot more bearish on CASI Pharmaceuticals, and their negativity could be grounds for caution.

So things certainly aren't looking great, and you should also know that we've spotted some potential warning signs with CASI Pharmaceuticals, including a short cash runway. For more information, you can click here to discover this and the 2 other risks we've identified.

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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.