EyePoint Pharmaceuticals, Inc. (NASDAQ:EYPT) Full-Year Results: Here's What Analysts Are Forecasting For This Year

Shareholders of EyePoint Pharmaceuticals, Inc. (NASDAQ:EYPT) will be pleased this week, given that the stock price is up 14% to US$7.13 following its latest yearly results. The statutory results were mixed overall, with revenues of US$43m in line with analyst forecasts, but losses of US$2.32 per share, some 4.9% larger than the analysts were predicting. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

Check out our latest analysis for EyePoint Pharmaceuticals

Taking into account the latest results, the twelve analysts covering EyePoint Pharmaceuticals provided consensus estimates of US$26.4m revenue in 2025, which would reflect a stressful 39% decline over the past 12 months. Losses are forecast to balloon 50% to US$2.85 per share. Before this latest report, the consensus had been expecting revenues of US$17.7m and US$2.60 per share in losses. Ergo, there's been a clear change in sentiment, with the analysts lifting this year's revenue estimates, while at the same time increasing their loss per share numbers to reflect the cost of achieving this growth.

There was no major change to the consensus price target of US$33.17, with growing revenues seemingly enough to offset the concern of growing losses. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic EyePoint Pharmaceuticals analyst has a price target of US$68.00 per share, while the most pessimistic values it at US$18.00. We would probably assign less value to the analyst forecasts in this situation, because such a wide range of estimates could imply that the future of this business is difficult to value accurately. 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.

Of course, another way to look at these forecasts is to place them into context against the industry itself. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 39% by the end of 2025. This indicates a significant reduction from annual growth of 12% 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 8.4% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - EyePoint Pharmaceuticals is expected to lag the wider industry.

The Bottom Line

The most important thing to take away is that the analysts increased their loss per share estimates for next year. They also upgraded their revenue estimates for next year, even though it is expected to grow slower than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

With that in mind, we wouldn't be too quick to come to a conclusion on EyePoint Pharmaceuticals. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple EyePoint Pharmaceuticals 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 - EyePoint Pharmaceuticals has 3 warning signs (and 1 which is a bit unpleasant) we think you should know about.

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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.