NewAmsterdam Pharma Company N.V. (NASDAQ:NAMS) Just Reported Full-Year Earnings And Analysts Are Lifting Their Estimates

The annual results for NewAmsterdam Pharma Company N.V. (NASDAQ:NAMS) were released last week, making it a good time to revisit its performance. Revenues of US$14m fell short of estimates by 10%, but statutory losses were relatively mild, coming in 2.2% smaller than the analysts expected, at US$2.19 per share. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

See our latest analysis for NewAmsterdam Pharma

Following the recent earnings report, the consensus from six analysts covering NewAmsterdam Pharma is for revenues of US$11.5m in 2024. This implies a chunky 18% decline in revenue compared to the last 12 months. Before this latest report, the consensus had been expecting revenues of US$8.33m and US$2.07 per share in losses. What's really interesting is that while the consensus made a sizeable gain to revenue estimates, it no longer provides an earnings per share estimate. This suggests that following the latest results, revenues are now the focus of the business.

The average price target rose 13% to US$33.09, with the analysts clearly having become more optimistic about NewAmsterdam Pharma'sprospects following these results. 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 NewAmsterdam Pharma at US$36.91 per share, while the most bearish prices it at US$28.93. This is a very narrow spread of estimates, implying either that NewAmsterdam Pharma is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

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. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 18% by the end of 2024. This indicates a significant reduction from annual growth of 8.8% over the last three years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 18% per year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - NewAmsterdam Pharma is expected to lag the wider industry.

The Bottom Line

The most important thing to take away is that the analysts upgraded their revenue estimates for next year. Fortunately, they also upgraded their revenue estimates, although our data indicates it is expected to perform worse than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

We have estimates for NewAmsterdam Pharma from its six analysts out to 2026, and you can see them free on our platform here.

You should always think about risks though. Case in point, we've spotted 3 warning signs for NewAmsterdam Pharma 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.