US$11.50 - That's What Analysts Think Journey Medical Corporation (NASDAQ:DERM) Is Worth After These Results

Explore Journey Medical's Fair Values from the Community and select yours

As you might know, Journey Medical Corporation (NASDAQ:DERM) recently reported its quarterly numbers. Revenues were in line with expectations, at US$15m, while statutory losses ballooned to US$0.16 per share. 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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Following the latest results, Journey Medical's four analysts are now forecasting revenues of US$70.5m in 2025. This would be a sizeable 25% improvement in revenue compared to the last 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 40% to US$0.21. Before this earnings announcement, the analysts had been modelling revenues of US$70.7m and losses of US$0.20 per share in 2025. While this year's revenue estimates held steady, there was also a noticeable increase in loss per share expectations, suggesting the consensus has a bit of a mixed view on the stock.

See our latest analysis for Journey Medical

Despite expectations of heavier losses next year,the analysts have lifted their price target 9.5% to US$11.50, perhaps implying these losses are not expected to be recurring over the long term. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. The most optimistic Journey Medical analyst has a price target of US$13.00 per share, while the most pessimistic values it at US$10.00. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. One thing stands out from these estimates, which is that Journey Medical is forecast to grow faster in the future than it has in the past, with revenues expected to display 56% annualised growth until the end of 2025. If achieved, this would be a much better result than the 9.0% annual decline over the past three years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue grow 8.1% per year. So it looks like Journey Medical is expected to grow faster than its competitors, at least for a while.

The Bottom Line

The most important thing to note is the forecast of increased losses next year, suggesting all may not be well at Journey Medical. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

With that in mind, we wouldn't be too quick to come to a conclusion on Journey Medical. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Journey Medical analysts - going out to 2027, and you can see them free on our platform here.

You still need to take note of risks, for example - Journey Medical has 1 warning sign we think you should be aware of.

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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.