Enanta Pharmaceuticals, Inc. (NASDAQ:ENTA) Second-Quarter Results Just Came Out: Here's What Analysts Are Forecasting For This Year

Investors in Enanta Pharmaceuticals, Inc. (NASDAQ:ENTA) had a good week, as its shares rose 9.1% to close at US$5.75 following the release of its quarterly results. It was a moderately negative result overall - revenue fell 6.5% short of analyst estimates at US$15m, although at least statutory losses were marginally smaller than expected, at US$1.06 per share. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

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After the latest results, the consensus from Enanta Pharmaceuticals' seven analysts is for revenues of US$62.4m in 2025, which would reflect a perceptible 3.3% decline in revenue compared to the last year of performance. Losses are supposed to decline, shrinking 17% from last year to US$3.73. Before this earnings announcement, the analysts had been modelling revenues of US$63.4m and losses of US$4.42 per share in 2025. While the revenue estimates were largely unchanged, sentiment seems to have improved, with the analysts upgrading their numbers and making a notable improvement in losses per share in particular.

Check out our latest analysis for Enanta Pharmaceuticals

The average price target held steady at US$15.29, seeming to indicate that business is performing in line with expectations. 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. Currently, the most bullish analyst values Enanta Pharmaceuticals at US$23.00 per share, while the most bearish prices it at US$5.00. With such a wide range in price targets, analysts are almost certainly betting on widely divergent outcomes in the underlying business. With this in mind, we wouldn't rely too heavily the consensus price target, as it is just an average and analysts clearly have some deeply divergent views on the business.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. One thing that stands out from these estimates is that shrinking revenues are expected to moderate over the period ending 2025 compared to the historical decline of 16% per annum 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 Enanta Pharmaceuticals is expected to see its revenue affected worse than other companies in the industry.

The Bottom Line

The most obvious conclusion is that the analysts made no changes to their forecasts for a loss 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$15.29, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on Enanta Pharmaceuticals. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Enanta Pharmaceuticals going out to 2027, and you can see them free on our platform here..

We don't want to rain on the parade too much, but we did also find 2 warning signs for Enanta Pharmaceuticals (1 is significant!) that you need to be mindful 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.