Ocuphire Pharma, Inc. Just Beat Revenue Estimates By 42%

Ocuphire Pharma, Inc. (NASDAQ:OCUP) investors will be delighted, with the company turning in some strong numbers with its latest results. Performance was better than the analysts expected, with revenues of US$40m coming in42% ahead of expectations, and statutory earnings per share (EPS) of US$0.87 exceeding forecasts by 18%. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

Check out our latest analysis for Ocuphire Pharma

After the latest results, the consensus from Ocuphire Pharma's four analysts is for revenues of US$19.9m in 2023, which would reflect a stressful 50% decline in sales compared to the last year of performance. The company is forecast to report a statutory loss of US$0.18 in 2023, a sharp decline from a profit over the last year. Before this latest report, the consensus had been expecting revenues of US$19.9m and US$0.21 per share in losses. Although the revenue estimates have not really changed Ocuphire Pharma'sfuture looks a little different to the past, with a favorable reduction in the loss per share forecasts in particular.

The average price target held steady at US$22.50, seeming to indicate that business is performing in line with expectations. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. There are some variant perceptions on Ocuphire Pharma, with the most bullish analyst valuing it at US$24.00 and the most bearish at US$20.00 per share. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. These estimates imply that sales are expected to slow, with a forecast annualised revenue decline of 50% by the end of 2023. This indicates a significant reduction from annual growth of 166% 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 5.0% per year. It's pretty clear that Ocuphire Pharma's revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The most obvious conclusion is that the analysts made no changes to their forecasts for a loss next year. On the plus side, there were no major changes to revenue estimates; although forecasts imply revenues will perform worse than the wider industry. The consensus price target held steady at US$22.50, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Ocuphire Pharma going out to 2025, 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 Ocuphire 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.