Earnings Update: Iovance Biotherapeutics, Inc. (NASDAQ:IOVA) Just Reported And Analysts Are Boosting Their Estimates

Iovance Biotherapeutics, Inc. (NASDAQ:IOVA) just released its quarterly report and things are looking bullish. Overall results were decent, with revenues of US$31m beating estimates by27%. Statutory losses were subsequently less thanthe analysts had expected, at US$0.34 per share. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

See our latest analysis for Iovance Biotherapeutics

Following the latest results, Iovance Biotherapeutics' twelve analysts are now forecasting revenues of US$162.1m in 2024. This would be a sizeable 395% improvement in revenue compared to the last 12 months. The loss per share is expected to ameliorate slightly, reducing to US$1.37. Before this earnings announcement, the analysts had been modelling revenues of US$139.6m and losses of US$1.32 per share in 2024. So there's been quite a change-up of views after the recent consensus updates, with the analysts significantly increasing their revenue forecasts while also expecting losses per share to increase. It looks like the top line growth will not be achieved without incremental costs.

There was no major change to the consensus price target of US$24.83, with growing revenues seemingly enough to offset the concern of growing losses. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic Iovance Biotherapeutics analyst has a price target of US$34.00 per share, while the most pessimistic values it at US$10.00. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Iovance Biotherapeutics' past performance and to peers in the same industry. It's clear from the latest estimates that Iovance Biotherapeutics' rate of growth is expected to accelerate meaningfully, with the forecast 20x annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 107% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 23% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Iovance Biotherapeutics is expected to grow much faster than its industry.

The Bottom Line

The most important thing to take away is that the analysts increased their loss per share estimates for next year. Happily, they also upgraded their revenue estimates, and are forecasting them to grow faster 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. At Simply Wall St, we have a full range of analyst estimates for Iovance Biotherapeutics going out to 2026, and you can see them free on our platform here..

And what about risks? Every company has them, and we've spotted 3 warning signs for Iovance Biotherapeutics 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.