RVL Pharmaceuticals plc (NASDAQ:RVLP) Analysts Just Cut Their EPS Forecasts Substantially

One thing we could say about the analysts on RVL Pharmaceuticals plc (NASDAQ:RVLP) - they aren't optimistic, having just made a major negative revision to their near-term (statutory) forecasts for the organization. Both revenue and earnings per share (EPS) forecasts went under the knife, suggesting analysts have soured majorly on the business.

Following this downgrade, RVL Pharmaceuticals' four analysts are forecasting 2023 revenues to be US$36m, approximately in line with the last 12 months. Losses are predicted to fall substantially, shrinking 24% to US$0.52 per share. However, before this estimates update, the consensus had been expecting revenues of US$49m and US$0.40 per share in losses. So there's been quite a change-up of views after the recent consensus updates, with the analysts making a serious cut to their revenue forecasts while also expecting losses per share to increase.

Check out our latest analysis for RVL Pharmaceuticals

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would also point out that the forecast 2.8% annualised revenue decline to the end of 2023 is better than the historical trend, which saw revenues shrink 49% annually over the past five years Compare this against analyst estimates for companies in the broader industry, which suggest that revenues (in aggregate) are expected to grow 7.5% annually. So it's pretty clear that, while it does have declining revenues, the analysts also expect RVL Pharmaceuticals to suffer worse than the wider industry.

The Bottom Line

The most important thing to take away is that analysts increased their loss per share estimates for this year. Unfortunately analysts also downgraded their revenue estimates, and industry data suggests that RVL Pharmaceuticals' revenues are expected to grow slower than the wider market. Given the serious cut to this year's outlook, it's clear that analysts have turned more bearish on RVL Pharmaceuticals, and we wouldn't blame shareholders for feeling a little more cautious themselves.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple RVL Pharmaceuticals analysts - going out to 2025, and you can see them free on our platform here.

Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are downgrading their estimates. So you may also wish to search this free list of stocks 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.