Analysts Are Updating Their Inhibrx, Inc. (NASDAQ:INBX) Estimates After Its First-Quarter Results

By
Simply Wall St
Published
May 16, 2021
NasdaqGM:INBX

Investors in Inhibrx, Inc. (NASDAQ:INBX) had a good week, as its shares rose 5.8% to close at US$16.71 following the release of its first-quarter results. Revenues came in at US$889k, in line with forecasts and the company reported a statutory loss of US$0.51 per share, roughly in line with expectations. 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 Inhibrx after the latest results.

See our latest analysis for Inhibrx

earnings-and-revenue-growth
NasdaqGM:INBX Earnings and Revenue Growth May 16th 2021

Taking into account the latest results, the two analysts covering Inhibrx provided consensus estimates of US$3.30m revenue in 2021, which would reflect a disturbing 74% decline on its sales over the past 12 months. Losses are forecast to narrow 5.9% to US$2.35 per share. Before this earnings announcement, the analysts had been modelling revenues of US$3.70m and losses of US$2.64 per share in 2021. So there's been quite a change-up of views after the recent consensus updates, withthe analysts making a serious cut to their revenue forecasts while also reducing the estimated losses the business will incur.

The consensus price target was broadly unchanged at US$40.50, implying that the business is performing roughly in line with expectations, despite adjustments to both revenue and earnings estimates.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We would highlight that sales are expected to reverse, with a forecast 84% annualised revenue decline to the end of 2021. That is a notable change from historical growth of 90% over the last year. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 14% per year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Inhibrx is expected to lag the wider industry.

The Bottom Line

The most important thing to take away is that the analysts reconfirmed their loss per share estimates for next year. Unfortunately, they also downgraded their revenue estimates, and our data indicates revenues are expected to perform worse than the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. Even so, long term profitability is more important for the value creation process. 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.

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 analyst estimates for Inhibrx going out as far as 2025, and you can see them free on our platform here.

Even so, be aware that Inhibrx is showing 3 warning signs in our investment analysis , and 1 of those is concerning...

Promoted
If you’re looking to trade Inhibrx, open an account with the lowest-cost* platform trusted by professionals, Interactive Brokers. Their clients from over 200 countries and territories trade stocks, options, futures, forex, bonds and funds worldwide from a single integrated account.


This article by Simply Wall St is general in nature. 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.
*Interactive Brokers Rated Lowest Cost Broker by StockBrokers.com Annual Online Review 2020


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

Discounted cash flow calculation for every stock

Simply Wall St does a detailed discounted cash flow calculation every 6 hours for every stock on the market, so if you want to find the intrinsic value of any company just search here. It’s FREE.


Simply Wall St character - Warren

Simply Wall St

Simply Wall St is a financial technology startup focused on providing unbiased, high-quality research coverage on every listed company in the world. Our research team consists of equity analysts with a public, market-beating track record.