Results: Halozyme Therapeutics, Inc. Exceeded Expectations And The Consensus Has Updated Its Estimates

Halozyme Therapeutics, Inc. (NASDAQ:HALO) investors will be delighted, with the company turning in some strong numbers with its latest results. It was a solid earnings report, with revenues and statutory earnings per share (EPS) both coming in strong. Revenues were 15% higher than the analysts had forecast, at US$265m, while EPS were US$0.93 beating analyst models by 51%. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. 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.

We've discovered 1 warning sign about Halozyme Therapeutics. View them for free.

After the latest results, the eight analysts covering Halozyme Therapeutics are now predicting revenues of US$1.23b in 2025. If met, this would reflect a solid 13% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to leap 23% to US$4.84. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$1.20b and earnings per share (EPS) of US$4.44 in 2025. So there seems to have been a moderate uplift in sentiment following the latest results, given the upgrades to both revenue and earnings per share forecasts for next year.

See our latest analysis for Halozyme Therapeutics

Despite these upgrades,the analysts have not made any major changes to their price target of US$68.88, suggesting that the higher estimates are not likely to have a long term impact on what the stock is worth. 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. Currently, the most bullish analyst values Halozyme Therapeutics at US$78.00 per share, while the most bearish prices it at US$58.00. This is a very narrow spread of estimates, implying either that Halozyme Therapeutics is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

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. It's pretty clear that there is an expectation that Halozyme Therapeutics' revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 18% growth on an annualised basis. This is compared to a historical growth rate of 31% over the past five years. Compare this to the 568 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 17% per year. Factoring in the forecast slowdown in growth, it looks like Halozyme Therapeutics is forecast to grow at about the same rate as the wider industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Halozyme Therapeutics' earnings potential next year. They also upgraded their revenue forecasts, although the latest estimates suggest that Halozyme Therapeutics will grow in line with the overall 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 Halozyme Therapeutics. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Halozyme Therapeutics going out to 2027, and you can see them free on our platform here..

You still need to take note of risks, for example - Halozyme Therapeutics has 1 warning sign we think you should be aware of.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.