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

It's been a pretty great week for Halozyme Therapeutics, Inc. (NASDAQ:HALO) shareholders, with its shares surging 11% to US$39.72 in the week since its latest yearly results. Halozyme Therapeutics reported in line with analyst predictions, delivering revenues of US$829m and statutory earnings per share of US$2.10, suggesting the business is executing well and in line with its plan. 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. 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.

Check out our latest analysis for Halozyme Therapeutics

After the latest results, the ten analysts covering Halozyme Therapeutics are now predicting revenues of US$956.8m in 2024. If met, this would reflect a notable 15% improvement in revenue compared to the last 12 months. Per-share earnings are expected to jump 35% to US$2.99. Before this earnings report, the analysts had been forecasting revenues of US$961.1m and earnings per share (EPS) of US$3.00 in 2024. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

The analysts reconfirmed their price target of US$48.10, showing that the business is executing well and in line with expectations. 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 Halozyme Therapeutics analyst has a price target of US$72.00 per share, while the most pessimistic values it at US$28.00. 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.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Halozyme Therapeutics' past performance and to peers in the same industry. It's pretty clear that there is an expectation that Halozyme Therapeutics' revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 15% growth on an annualised basis. This is compared to a historical growth rate of 35% over the past five years. Compare this to the 592 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 17% per year. So it's pretty clear that, while Halozyme Therapeutics' revenue growth is expected to slow, it's expected to grow roughly in line with the industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. The consensus price target held steady at US$48.10, 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. We have forecasts for Halozyme Therapeutics going out to 2026, and you can see them free on our platform here.

Plus, you should also learn about the 1 warning sign we've spotted with Halozyme Therapeutics .

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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.