Analysts Just Made A Major Revision To Their Marinus Pharmaceuticals, Inc. (NASDAQ:MRNS) Revenue Forecasts

One thing we could say about the analysts on Marinus Pharmaceuticals, Inc. (NASDAQ:MRNS) - they aren't optimistic, having just made a major negative revision to their near-term (statutory) forecasts for the organization. This report focused on revenue estimates, and it looks as though the consensus view of the business has become substantially more conservative.

Following the downgrade, the current consensus from Marinus Pharmaceuticals' nine analysts is for revenues of US$44m in 2022 which - if met - would reflect a huge 60% increase on its sales over the past 12 months. Losses are predicted to fall substantially, shrinking 26% to US$2.12. Yet before this consensus update, the analysts had been forecasting revenues of US$59m and losses of US$2.13 per share in 2022. So there's definitely been a change in sentiment in this update, with the analysts administering a substantial haircut to this year's revenue estimates, while at the same time holding losses per share steady.

View our latest analysis for Marinus Pharmaceuticals

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. It's clear from the latest estimates that Marinus Pharmaceuticals' rate of growth is expected to accelerate meaningfully, with the forecast 156% annualised revenue growth to the end of 2022 noticeably faster than its historical growth of 92% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 3.8% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Marinus Pharmaceuticals to grow faster than the wider industry.

The Bottom Line

Unfortunately, analysts also downgraded their revenue estimates, although our data indicates revenues are expected to perform better than the wider market. Overall, given the drastic downgrade to this year's forecasts, we'd be feeling a little more wary of Marinus Pharmaceuticals going forwards.

There might be good reason for analyst bearishness towards Marinus Pharmaceuticals, like a short cash runway. Learn more, and discover the 1 other warning sign 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 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.