Broker Revenue Forecasts For Eton Pharmaceuticals, Inc. (NASDAQ:ETON) Are Surging Higher

Celebrations may be in order for Eton Pharmaceuticals, Inc. (NASDAQ:ETON) shareholders, with the analysts delivering a significant upgrade to their statutory estimates for the company. The consensus estimated revenue numbers rose, with their view now clearly much more bullish on the company's business prospects.

After the upgrade, the dual analysts covering Eton Pharmaceuticals are now predicting revenues of US$31m in 2022. If met, this would reflect a substantial 41% improvement in sales compared to the last 12 months. Before the latest update, the analysts were foreseeing US$31m of revenue in 2022. From what we can see, it looks like Eton Pharmaceuticals is performing in line with analyst expectations. The the analysts we track have all updated their numbers, and there were no major changes to their forecasts for this year.

See our latest analysis for Eton Pharmaceuticals

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's pretty clear that there is an expectation that Eton Pharmaceuticals' revenue growth will slow down substantially, with revenues to the end of 2022 expected to display 41% growth on an annualised basis. This is compared to a historical growth rate of 124% over the past three years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 3.8% annually. So it's pretty clear that, while Eton Pharmaceuticals' revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

The Bottom Line

The most important thing to take away is that analysts reconfirmed their revenue estimates for this year, suggesting that the business is performing in line with market expectations. They're also forecasting more rapid revenue growth than the wider market. Given that analysts appear to be expecting substantial improvement in the sales pipeline, now could be the right time to take another look at Eton Pharmaceuticals.

Better yet, Eton Pharmaceuticals is expected to break-even soon - within the next few years - according to analyst forecasts, which would be a momentous event for shareholders. For more information, you can click through to our free platform to learn more about these forecasts.

Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are upgrading their estimates. So you may also wish to search this free list of stocks 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.