News Flash: 12 Analysts Think Iovance Biotherapeutics, Inc. (NASDAQ:IOVA) Earnings Are Under Threat

The analysts covering Iovance Biotherapeutics, Inc. (NASDAQ:IOVA) delivered a dose of negativity to shareholders today, by making a substantial revision to their statutory forecasts for this year. Both revenue and earnings per share (EPS) forecasts went under the knife, suggesting the analysts have soured majorly on the business.

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Following the downgrade, the latest consensus from Iovance Biotherapeutics' twelve analysts is for revenues of US$286m in 2025, which would reflect a major 35% improvement in sales compared to the last 12 months. Losses are expected to increase slightly, to US$1.16 per share. However, before this estimates update, the consensus had been expecting revenues of US$453m and US$0.80 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.

View our latest analysis for Iovance Biotherapeutics

The consensus price target fell 39% to US$12.20, with the analysts clearly concerned about the company following the weaker revenue and earnings outlook.

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 48% annualised growth rate until the end of 2025 being well below the historical 99% 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 18% annually. So it's pretty clear that, while Iovance Biotherapeutics' revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

The Bottom Line

The most important thing to take away is that analysts increased their loss per share estimates for this year. While analysts did downgrade their revenue estimates, these forecasts still imply revenues will perform better than the wider market. After such a stark change in sentiment from analysts, we'd understand if readers now felt a bit wary of Iovance Biotherapeutics.

As you can see, the analysts clearly aren't bullish, and there might be good reason for that. We've identified some potential issues with Iovance Biotherapeutics' financials, such as dilutive stock issuance over the past year. Learn more, and discover the 2 other flags we've identified, for free on our platform here.

Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are downgrading their estimates. So you may also wish to search this free list of stocks with high insider ownership.

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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.