The Opiant Pharmaceuticals, Inc. (NASDAQ:OPNT) Yearly Results Are Out And Analysts Have Published New Forecasts

The yearly results for Opiant Pharmaceuticals, Inc. (NASDAQ:OPNT) were released last week, making it a good time to revisit its performance. The results don't look great, especially considering that statutory losses grew 97% toUS$0.44 per share. Revenues of US$30m did beat expectations by 2.5%, but it looks like a bit of a cold comfort. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

See our latest analysis for Opiant Pharmaceuticals

After the latest results, the consensus from Opiant Pharmaceuticals' three analysts is for revenues of US$25.7m in 2021, which would reflect a considerable 13% decline in sales compared to the last year of performance. Losses are forecast to balloon 344% to US$1.94 per share. Before this earnings announcement, the analysts had been modelling revenues of US$25.7m and losses of US$1.94 per share in 2021.

The consensus price target was unchanged at US$41.33, suggesting that the business - losses and all - is executing in line with estimates. 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. There are some variant perceptions on Opiant Pharmaceuticals, with the most bullish analyst valuing it at US$44.00 and the most bearish at US$38.00 per share. This is a very narrow spread of estimates, implying either that Opiant Pharmaceuticals is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

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. We would highlight that sales are expected to reverse, with a forecast 13% annualised revenue decline to the end of 2021. That is a notable change from historical growth of 23% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 5.8% per year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Opiant Pharmaceuticals is expected to lag 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$41.33, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for Opiant Pharmaceuticals going out to 2025, and you can see them free on our platform here.

However, before you get too enthused, we've discovered 2 warning signs for Opiant Pharmaceuticals that you should be aware of.

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