Ovid Therapeutics Inc. (NASDAQ:OVID) Just Reported Full-Year Earnings And Analysts Are Lifting Their Estimates

It's been a good week for Ovid Therapeutics Inc. (NASDAQ:OVID) shareholders, because the company has just released its latest full-year results, and the shares gained 5.9% to US$4.34. Results overall were mixed; even though revenues of US$13m beat expectations by 14%, statutory losses were US$1.39 per share, 3.1% larger than what the analysts had forecast. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

See our latest analysis for Ovid Therapeutics

Taking into account the latest results, the current consensus from Ovid Therapeutics' six analysts is for revenues of US$124.5m in 2021, which would reflect a substantial 887% increase on its sales over the past 12 months. Earnings are expected to improve, with Ovid Therapeutics forecast to report a statutory profit of US$0.72 per share. Before this earnings report, the analysts had been forecasting revenues of US$103.4m and earnings per share (EPS) of US$0.49 in 2021. So we can see there's been a pretty clear increase in sentiment following the latest results, with both revenues and earnings per share receiving a decent lift in the latest estimates.

Despite these upgrades,the analysts have not made any major changes to their price target of US$6.40, suggesting that the higher estimates are not likely to have a long term impact on what the stock is worth. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Ovid Therapeutics analyst has a price target of US$8.00 per share, while the most pessimistic values it at US$5.00. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Ovid Therapeutics' earnings potential next year. Happily, they also upgraded their revenue estimates, and are forecasting revenues to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Ovid Therapeutics analysts - 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 Ovid Therapeutics that you should be aware of.

If you decide to trade Ovid Therapeutics, use the lowest-cost* platform that is rated #1 Overall by Barron’s, Interactive Brokers. Trade stocks, options, futures, forex, bonds and funds on 135 markets, all from a single integrated account. Promoted

This article by Simply Wall St is general in nature. 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.
^*Interactive Brokers Rated Lowest Cost Broker by StockBrokers.com Annual Online Review 2020

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.