New Forecasts: Here's What Analysts Think The Future Holds For RVL Pharmaceuticals plc (NASDAQ:RVLP)

Celebrations may be in order for RVL Pharmaceuticals plc (NASDAQ:RVLP) shareholders, with the analysts delivering a significant upgrade to their statutory estimates for the company. The revenue forecast for this year has experienced a facelift, with the analysts now much more optimistic on its sales pipeline.

After the upgrade, the consensus from RVL Pharmaceuticals' four analysts is for revenues of US$56m in 2022, which would reflect a disturbing 66% decline in sales compared to the last year of performance. The loss per share is anticipated to greatly reduce in the near future, narrowing 46% to US$0.68. Yet before this consensus update, the analysts had been forecasting revenues of US$50m and losses of US$0.75 per share in 2022. So there's been quite a change-up of views after the recent consensus updates, with the analysts making a sizeable increase to their revenue forecasts while also reducing the estimated loss as the business grows towards breakeven.

Check out our latest analysis for RVL Pharmaceuticals

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. One more thing stood out to us about these estimates, and it's the idea that RVL Pharmaceuticals' decline is expected to accelerate, with revenues forecast to fall at an annualised rate of 66% to the end of 2022. This tops off a historical decline of 12% a year over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue grow 4.2% per year. So while a broad number of companies are forecast to grow, unfortunately RVL Pharmaceuticals is expected to see its sales affected worse than other companies in the industry.

The Bottom Line

The most important thing here is that analysts reduced their loss per share estimates for this year, reflecting increased optimism around RVL Pharmaceuticals' prospects. Fortunately, they also upgraded their revenue estimates, and are forecasting revenues to grow slower than the wider market. Seeing the dramatic upgrade to this year's forecasts, it might be time to take another look at RVL Pharmaceuticals.

These earnings upgrades look like a sterling endorsement, but before diving in - you should know that we've spotted 3 potential risks with RVL Pharmaceuticals, including a short cash runway. You can learn more, and discover the 2 other risks we've identified, for free on our platform here.

Another way to search for interesting companies that could be reaching an inflection point is to track whether management are buying or selling, with our free list of growing companies that insiders are buying.

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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.