Some Analysts Just Cut Their Inovio Pharmaceuticals, Inc. (NASDAQ:INO) Estimates

One thing we could say about the analysts on Inovio Pharmaceuticals, Inc. (NASDAQ:INO) - they aren't optimistic, having just made a major negative revision to their near-term (statutory) forecasts for the organization. There was a fairly draconian cut to their revenue estimates, perhaps an implicit admission that previous forecasts were much too optimistic.

Following the downgrade, the consensus from four analysts covering Inovio Pharmaceuticals is for revenues of US$920k in 2023, implying a disturbing 91% decline in sales compared to the last 12 months. Losses are predicted to fall substantially, shrinking 37% to US$0.58. However, before this estimates update, the consensus had been expecting revenues of US$1.1m and US$0.53 per share in losses. So there's been quite a change-up of views after the recent consensus updates, with the analysts making a serious cut to their revenue forecasts while also expecting losses per share to increase.

See our latest analysis for Inovio Pharmaceuticals

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. One more thing stood out to us about these estimates, and it's the idea that Inovio Pharmaceuticals' decline is expected to accelerate, with revenues forecast to fall at an annualised rate of 96% to the end of 2023. This tops off a historical decline of 45% a year over the past five years. Compare this against analyst estimates for companies in the broader industry, which suggest that revenues (in aggregate) are expected to grow 19% annually. So while a broad number of companies are forecast to grow, unfortunately Inovio Pharmaceuticals is expected to see its sales affected worse than other companies in the industry.

The Bottom Line

The most important thing to take away is that analysts increased their loss per share estimates for this year. Regrettably, they also downgraded their revenue estimates, and the latest forecasts imply the business will grow sales slower than the wider market. Overall, given the drastic downgrade to this year's forecasts, we'd be feeling a little more wary of Inovio Pharmaceuticals going forwards.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Inovio Pharmaceuticals analysts - going out to 2025, and you can see them free on our platform here.

Another way to search for interesting companies that could be reaching an inflection point is to track whether management are buying or selling, with our free list of growing companies that insiders are buying.

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