Here's What Analysts Are Forecasting For Iovance Biotherapeutics, Inc. (NASDAQ:IOVA) After Its Third-Quarter Results

Shareholders of Iovance Biotherapeutics, Inc. (NASDAQ:IOVA) will be pleased this week, given that the stock price is up 17% to US$2.30 following its latest quarterly results. It was a moderately negative result overall - revenue fell 7.4% short of analyst estimates at US$67m, although at least statutory losses were marginally smaller than expected, at US$0.25 per share. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

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Taking into account the latest results, the consensus forecast from Iovance Biotherapeutics' eleven analysts is for revenues of US$426.7m in 2026. This reflects a sizeable 70% improvement in revenue compared to the last 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 40% to US$0.66. Before this latest report, the consensus had been expecting revenues of US$426.8m and US$0.67 per share in losses.

See our latest analysis for Iovance Biotherapeutics

The consensus price target was unchanged at US$7.75, suggesting that the business - losses and all - is executing in line with estimates. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. The most optimistic Iovance Biotherapeutics analyst has a price target of US$17.00 per share, while the most pessimistic values it at US$1.50. We would probably assign less value to the analyst forecasts in this situation, because such a wide range of estimates could imply that the future of this business is difficult to value accurately. With this in mind, we wouldn't rely too heavily the consensus price target, as it is just an average and analysts clearly have some deeply divergent views on the business.

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. We would highlight that Iovance Biotherapeutics' revenue growth is expected to slow, with the forecast 53% annualised growth rate until the end of 2026 being well below the historical 90% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 21% annually. Even after the forecast slowdown in growth, it seems obvious that Iovance Biotherapeutics is also expected to grow faster than the wider industry.

The Bottom Line

The most obvious conclusion is that the analysts made no changes to their forecasts for a loss next year. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. The consensus price target held steady at US$7.75, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on Iovance Biotherapeutics. 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 Iovance Biotherapeutics going out to 2027, and you can see them free on our platform here..

Don't forget that there may still be risks. For instance, we've identified 2 warning signs for Iovance Biotherapeutics that you should be aware of.

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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.