This Just In: Analysts Are Boosting Their MannKind Corporation (NASDAQ:MNKD) Outlook for This Year

Celebrations may be in order for MannKind Corporation (NASDAQ:MNKD) shareholders, with the analysts delivering a significant upgrade to their statutory estimates for the company. Consensus estimates suggest investors could expect greatly increased statutory revenues and earnings per share, with the analysts modelling a real improvement in business performance. MannKind has also found favour with investors, with the stock up an impressive 27% to US$4.50 over the past week. We'll be curious to see if these new estimates convince the market to lift the stock price higher still.

Following the upgrade, the most recent consensus for MannKind from its six analysts is for revenues of US$284m in 2024 which, if met, would be a huge 43% increase on its sales over the past 12 months. Losses are expected to turn into profits real soon, with the analysts forecasting US$0.20 in per-share earnings. Previously, the analysts had been modelling revenues of US$246m and earnings per share (EPS) of US$0.088 in 2024. So we can see there's been a pretty clear increase in analyst sentiment in recent times, with both revenues and earnings per share receiving a decent lift in the latest estimates.

Check out our latest analysis for MannKind

Despite these upgrades, the analysts have not made any major changes to their price target of US$7.08, suggesting that the higher estimates are not likely to have a long term impact on what the stock is worth.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. The analysts are definitely expecting MannKind's growth to accelerate, with the forecast 43% annualised growth to the end of 2024 ranking favourably alongside historical growth of 28% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 18% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that MannKind is expected to grow much faster than its industry.

The Bottom Line

The biggest takeaway for us from these new estimates is that analysts upgraded their earnings per share estimates, with improved earnings power expected for this year. Fortunately, analysts also upgraded their revenue estimates, and our data indicates sales are expected to perform better than the wider market. The lack of change in the price target is puzzling, but with a serious upgrade to this year's earnings expectations, it might be time to take another look at MannKind.

These earnings upgrades look like a sterling endorsement, but before diving in - you should know that we've spotted 2 potential risk with MannKind, including dilutive stock issuance over the past year. You can learn more, and discover the 1 other risk 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 upgrading their estimates. So you may also wish to search this free list of stocks 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.