Here's What Analysts Are Forecasting For Legend Biotech Corporation (NASDAQ:LEGN) After Its Full-Year Results

Legend Biotech Corporation (NASDAQ:LEGN) defied analyst predictions to release its yearly results, which were ahead of market expectations. The results were impressive, with revenues of US$93m exceeding analyst forecasts by 39%, and statutory losses of US$1.37 were likewise much smaller than the analysts had forecast. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Legend Biotech after the latest results.

See our latest analysis for Legend Biotech

Taking into account the latest results, the most recent consensus for Legend Biotech from five analysts is for revenues of US$134.4m in 2022 which, if met, would be a sizeable 45% increase on its sales over the past 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 27% to US$1.82. Before this earnings announcement, the analysts had been modelling revenues of US$134.4m and losses of US$1.68 per share in 2022. Overall it looks as though the analysts were a bit mixed on the latest consensus updates. Although sales forecasts held steady, the consensus also made a pronounced increase to its losses per share forecasts.

As a result, there was no major change to the consensus price target of US$66.14, with the analysts implicitly confirming that the business looks to be performing in line with expectations, despite higher forecast losses. 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 Legend Biotech analyst has a price target of US$75.00 per share, while the most pessimistic values it at US$53.00. 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 Legend Biotech shareholders.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's clear from the latest estimates that Legend Biotech's rate of growth is expected to accelerate meaningfully, with the forecast 45% annualised revenue growth to the end of 2022 noticeably faster than its historical growth of 23% p.a. over the past three years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 11% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Legend Biotech to grow faster than the wider 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, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at US$66.14, with the latest estimates not enough to have an impact on their price targets.

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 Legend Biotech going out to 2024, 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 Legend Biotech 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.