Analysts Have Just Cut Their Eiger BioPharmaceuticals, Inc. (NASDAQ:EIGR) Revenue Estimates By 22%

The latest analyst coverage could presage a bad day for Eiger BioPharmaceuticals, Inc. (NASDAQ:EIGR), with the analysts making across-the-board cuts to their statutory estimates that might leave shareholders a little shell-shocked. There was a fairly draconian cut to their revenue estimates, perhaps an implicit admission that previous forecasts were much too optimistic.

After this downgrade, Eiger BioPharmaceuticals' five analysts are now forecasting revenues of US$20m in 2023. This would be a major 44% improvement in sales compared to the last 12 months. Before the latest update, the analysts were foreseeing US$26m of revenue in 2023. It looks like forecasts have become a fair bit less optimistic on Eiger BioPharmaceuticals, given the sizeable cut to revenue estimates.

See our latest analysis for Eiger BioPharmaceuticals

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. We would highlight that Eiger BioPharmaceuticals' revenue growth is expected to slow, with the forecast 34% annualised growth rate until the end of 2023 being well below the historical 84% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 13% per year. So it's pretty clear that, while Eiger BioPharmaceuticals' revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

The Bottom Line

The clear low-light was that analysts slashing their revenue forecasts for Eiger BioPharmaceuticals next year. They're also forecasting more rapid revenue growth than the wider market. Given the stark change in sentiment, we'd understand if investors became more cautious on Eiger BioPharmaceuticals after today.

After a downgrade like this, it's pretty clear that previous forecasts were too optimistic. What's more, we've spotted several possible issues with Eiger BioPharmaceuticals' business, like dilutive stock issuance over the past year. For more information, you can click here to discover this and the 3 other flags we've identified.

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 that insiders are buying.

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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.