New Forecasts: Here's What One Analyst Thinks The Future Holds For Eyenovia, Inc. (NASDAQ:EYEN)

Celebrations may be in order for Eyenovia, Inc. (NASDAQ:EYEN) shareholders, with the covering analyst 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. Eyenovia has also found favour with investors, with the stock up a noteworthy 14% to US$3.26 over the past week. We'll be curious to see if these new estimates convince the market to lift the stock price higher still.

After the upgrade, the consensus from Eyenovia's single analyst is for revenues of US$2.5m in 2022, which would reflect a concerning 82% decline in sales compared to the last year of performance. Losses are supposed to balloon 93% to US$0.85 per share. Yet prior to the latest estimates, the analyst had been forecasting revenues of US$1.8m and losses of US$0.91 per share in 2022. We can see there's definitely been a change in sentiment in this update, with the analyst administering a sizeable upgrade to this year's revenue estimates, while at the same time reducing their loss estimates.

See our latest analysis for Eyenovia

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Eyenovia's past performance and to peers in the same industry. We would highlight that sales are expected to reverse, with a forecast 82% annualised revenue decline to the end of 2022. That is a notable change from historical growth of 99% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 4.2% annually for the foreseeable future. It's pretty clear that Eyenovia's revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The highlight for us was that the consensus reduced its estimated losses this year, perhaps suggesting Eyenovia is moving incrementally towards profitability. Fortunately, they also upgraded their revenue estimates, and are forecasting revenues to grow slower than the wider market. Given that the analyst appears to be expecting substantial improvement in the sales pipeline, now could be the right time to take another look at Eyenovia.

Still, the long-term prospects of the business are much more relevant than next year's earnings. At least one analyst has provided forecasts out to 2024, which can be seen for free on our platform here.

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.