Pacira BioSciences, Inc. Just Missed Earnings - But Analysts Have Updated Their Models

Investors in Pacira BioSciences, Inc. (NASDAQ:PCRX) had a good week, as its shares rose 9.3% to close at US$29.86 following the release of its first-quarter results. Revenues were in line with forecasts, at US$167m, although statutory earnings per share came in 17% below what the analysts expected, at US$0.19 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. 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 Pacira BioSciences

Following last week's earnings report, Pacira BioSciences' ten analysts are forecasting 2024 revenues to be US$694.6m, approximately in line with the last 12 months. Statutory earnings per share are forecast to decline 20% to US$1.22 in the same period. In the lead-up to this report, the analysts had been modelling revenues of US$692.8m and earnings per share (EPS) of US$1.21 in 2024. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

The analysts reconfirmed their price target of US$45.36, showing that the business is executing well and in line with expectations. 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. There are some variant perceptions on Pacira BioSciences, with the most bullish analyst valuing it at US$57.00 and the most bearish at US$36.00 per share. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We would highlight that Pacira BioSciences' revenue growth is expected to slow, with the forecast 2.5% annualised growth rate until the end of 2024 being well below the historical 14% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 9.4% annually. Factoring in the forecast slowdown in growth, it seems obvious that Pacira BioSciences is also expected to grow slower than other industry participants.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target held steady at US$45.36, with the latest estimates not enough to have an impact on their price targets.

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. At Simply Wall St, we have a full range of analyst estimates for Pacira BioSciences going out to 2026, and you can see them free on our platform here..

Don't forget that there may still be risks. For instance, we've identified 1 warning sign for Pacira BioSciences that 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.