Need To Know: Analysts Are Much More Bullish On Sage Therapeutics, Inc. (NASDAQ:SAGE)

By
Simply Wall St
Published
December 11, 2020

Celebrations may be in order for Sage Therapeutics, Inc. (NASDAQ:SAGE) shareholders, with the analysts delivering a significant upgrade to their statutory estimates for the company. The consensus statutory numbers for both revenue and earnings per share (EPS) increased, with their view clearly much more bullish on the company's business prospects.

Following the upgrade, the current forecast from Sage Therapeutics' 20 analysts is for revenues of US$194m in 2021, which would reflect a sizeable improvement in sales compared to the last 12 months. The loss per share is anticipated to greatly reduce in the near future, narrowing 67% to US$3.38. Yet prior to the latest estimates, the analysts had been forecasting revenues of US$150m and losses of US$5.81 per share in 2021. We can see there's definitely been a change in sentiment in this update, with the analysts administering a sizeable upgrade to next year's revenue estimates, while at the same time reducing their loss estimates.

See our latest analysis for Sage Therapeutics

NasdaqGM:SAGE Earnings and Revenue Growth December 11th 2020

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. The analysts are definitely expecting Sage Therapeutics' growth to accelerate, with the forecast 25x growth ranking favourably alongside historical growth of 34% per annum over the past year. Compare this with other companies in the same industry, which are forecast to grow their revenue 21% next year. Factoring in the forecast acceleration in revenue, it's pretty clear that Sage Therapeutics is expected to grow much faster than its industry.

The Bottom Line

The most important thing here is that analysts reduced their loss per share estimates for next year, reflecting increased optimism around Sage Therapeutics' prospects. Fortunately, analysts also upgraded their revenue estimates, and our data indicates sales are expected to perform better than the wider market. With a serious upgrade to expectations, it might be time to take another look at Sage Therapeutics.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Sage Therapeutics going out to 2024, 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 upgrading 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. 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.
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