Five Prime Therapeutics, Inc. (NASDAQ:FPRX) just released its latest quarterly report and things are not looking great. It was not a great statutory result, with revenues coming in 55% lower than the analysts predicted. Unsurprisingly, earnings also fell seriously short of forecasts, turning into a per-share loss of US$0.74. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Five Prime Therapeutics after the latest results.
Following last week's earnings report, Five Prime Therapeutics' eight analysts are forecasting 2021 revenues to be US$17.0m, approximately in line with the last 12 months. Losses are predicted to fall substantially, shrinking 32% to US$1.83. Yet prior to the latest earnings, the analysts had been forecasting revenues of US$17.2m and losses of US$2.15 per share in 2021. Although the revenue estimates have not really changed Five Prime Therapeutics'future looks a little different to the past, with a the loss per share forecasts in particular.
The average price target held steady at US$8.50, seeming to indicate that business is performing in line with expectations. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Five Prime Therapeutics analyst has a price target of US$11.00 per share, while the most pessimistic values it at US$5.00. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.
Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We would also point out that the forecast 0.8% revenue decline is better than the historical trend, which saw revenues shrink 58% annually over the past five years
The Bottom Line
The most important thing to take away is that the analysts reconfirmed their loss per share estimates for next year. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting sales are tracking in line with expectations - although our data does suggest that Five Prime Therapeutics' revenues are expected to perform worse than the wider industry. The consensus price target held steady at US$8.50, with the latest estimates not enough to have an impact on their price targets.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Five Prime Therapeutics going out to 2024, and you can see them free on our platform here..
Plus, you should also learn about the 3 warning signs we've spotted with Five Prime Therapeutics .
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