Downgrade: Here's How Analysts See scPharmaceuticals Inc. (NASDAQ:SCPH) Performing In The Near Term

Today is shaping up negative for scPharmaceuticals Inc. (NASDAQ:SCPH) shareholders, with the analysts delivering a substantial negative revision to next year's forecasts. Both revenue and earnings per share (EPS) estimates were cut sharply as the analysts factored in the latest outlook for the business, concluding that they were too optimistic previously.

Following the downgrade, the latest consensus from scPharmaceuticals' six analysts is for revenues of US$85m in 2025, which would reflect a substantial 182% improvement in sales compared to the last 12 months. Losses are predicted to fall substantially, shrinking 41% to US$0.95 per share. However, before this estimates update, the consensus had been expecting revenues of US$97m and US$0.73 per share in losses. Ergo, there's been a clear change in sentiment, with the analysts administering a notable cut to next year's revenue estimates, while at the same time increasing their loss per share forecasts.

Check out our latest analysis for scPharmaceuticals

The consensus price target fell 6.1% to US$18.00, implicitly signalling that lower earnings per share are a leading indicator for scPharmaceuticals' valuation.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the scPharmaceuticals' past performance and to peers in the same industry. The analysts are definitely expecting scPharmaceuticals' growth to accelerate, with the forecast 129% annualised growth to the end of 2025 ranking favourably alongside historical growth of 91% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 10% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that scPharmaceuticals is expected to grow much faster than its industry.

The Bottom Line

The most important thing to take away is that analysts increased their loss per share estimates for next year. Unfortunately, analysts also downgraded their revenue estimates, although our data indicates revenues are expected to perform better than the wider market. Given the scope of the downgrades, it would not be a surprise to see the market become more wary of the business.

Still, the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple scPharmaceuticals analysts - going out to 2026, and you can see them 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 backed by insiders.

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