Some Coherus BioSciences, Inc. (NASDAQ:CHRS) Analysts Just Made A Major Cut To Next Year's Estimates

Market forces rained on the parade of Coherus BioSciences, Inc. (NASDAQ:CHRS) 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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After the downgrade, the consensus from Coherus BioSciences' five analysts is for revenues of US$56m in 2025, which would reflect a sizeable 79% decline in sales compared to the last year of performance. Following this this downgrade, earnings are now expected to tip over into loss-making territory, with the analysts forecasting losses of US$0.011 per share in 2025. Before this latest update, the analysts had been forecasting revenues of US$100m and earnings per share (EPS) of US$0.37 in 2025. There looks to have been a major change in sentiment regarding Coherus BioSciences' prospects, with a pretty serious reduction to revenues and the analysts now forecasting a loss instead of a profit.

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These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Coherus BioSciences' past performance and to peers in the same industry. One more thing stood out to us about these estimates, and it's the idea that Coherus BioSciences' decline is expected to accelerate, with revenues forecast to fall at an annualised rate of 88% to the end of 2025. This tops off a historical decline of 15% a year 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 17% per year. So while a broad number of companies are forecast to grow, unfortunately Coherus BioSciences is expected to see its sales affected worse than other companies in the industry.

The Bottom Line

The most important thing to take away is that analysts are expecting Coherus BioSciences to become unprofitable 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 analysts have become a lot more bearish on Coherus BioSciences, and their negativity could be grounds for caution.

Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. We have estimates - from multiple Coherus BioSciences analysts - going out to 2027, and you can see them free on our platform here.

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