Earnings Update: Halozyme Therapeutics, Inc. (NASDAQ:HALO) Just Reported Its Yearly Results And Analysts Are Updating Their Forecasts

As you might know, Halozyme Therapeutics, Inc. (NASDAQ:HALO) recently reported its yearly numbers. Halozyme Therapeutics reported in line with analyst predictions, delivering revenues of US$1.0b and statutory earnings per share of US$3.43, suggesting the business is executing well and in line with its plan. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Halozyme Therapeutics after the latest results.

View our latest analysis for Halozyme Therapeutics

After the latest results, the ten analysts covering Halozyme Therapeutics are now predicting revenues of US$1.19b in 2025. If met, this would reflect a decent 17% improvement in revenue compared to the last 12 months. Per-share earnings are expected to jump 23% to US$4.42. In the lead-up to this report, the analysts had been modelling revenues of US$1.18b and earnings per share (EPS) of US$4.52 in 2025. The analysts seem to have become a little more negative on the business after the latest results, given the minor downgrade to their earnings per share numbers for next year.

It might be a surprise to learn that the consensus price target was broadly unchanged at US$66.11, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. 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 Halozyme Therapeutics at US$78.00 per share, while the most bearish prices it at US$53.00. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

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. We would highlight that Halozyme Therapeutics' revenue growth is expected to slow, with the forecast 17% annualised growth rate until the end of 2025 being well below the historical 32% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 21% per year. Factoring in the forecast slowdown in growth, it seems obvious that Halozyme Therapeutics is also expected to grow slower than other industry participants.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse 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.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have forecasts for Halozyme Therapeutics going out to 2027, and you can see them free on our platform here.

Even so, be aware that Halozyme Therapeutics is showing 1 warning sign in our investment analysis , 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.