The Consensus EPS Estimates For iTeos Therapeutics, Inc. (NASDAQ:ITOS) Just Fell Dramatically

The analysts covering iTeos Therapeutics, Inc. (NASDAQ:ITOS) delivered a dose of negativity to shareholders today, by making a substantial revision to their statutory forecasts for this year. Revenue and earnings per share (EPS) forecasts were both revised downwards, with the analysts seeing grey clouds on the horizon.

Following the downgrade, the consensus from five analysts covering iTeos Therapeutics is for revenues of US$277m in 2022, implying a disturbing 49% decline in sales compared to the last 12 months. Statutory earnings per share are anticipated to tumble 75% to US$2.29 in the same period. Before this latest update, the analysts had been forecasting revenues of US$358m and earnings per share (EPS) of US$4.38 in 2022. It looks like analyst sentiment has declined substantially, with a sizeable cut to revenue estimates and a large cut to earnings per share numbers as well.

Check out our latest analysis for iTeos Therapeutics

Analysts made no major changes to their price target of US$45.20, suggesting the downgrades are not expected to have a long-term impact on iTeos Therapeutics' valuation. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values iTeos Therapeutics at US$59.00 per share, while the most bearish prices it at US$34.00. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await iTeos Therapeutics shareholders.

The Bottom Line

The most important thing to take away is that analysts cut their earnings per share estimates, expecting a clear decline in business conditions. We're also surprised to see that the price target went unchanged. Still, deteriorating business conditions (assuming accurate forecasts!) can be a leading indicator for the stock price, so we wouldn't blame investors for being more cautious on iTeos Therapeutics after the downgrade.

Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. At Simply Wall St, we have a full range of analyst estimates for iTeos Therapeutics going out to 2024, 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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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.