SCYNEXIS, Inc. Beat Analyst Estimates: See What The Consensus Is Forecasting For This Year

It's been a good week for SCYNEXIS, Inc. (NASDAQ:SCYX) shareholders, because the company has just released its latest first-quarter results, and the shares gained 9.6% to US$1.94. In addition to smashing expectations with revenues of US$1.4m, SCYNEXIS delivered a surprise statutory profit of US$0.01 per share, a notable improvement compared to analyst expectations of a loss. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

See our latest analysis for SCYNEXIS

Following the recent earnings report, the consensus from five analysts covering SCYNEXIS is for revenues of US$49.2m in 2024. This implies a stressful 65% decline in revenue compared to the last 12 months. The company is forecast to report a statutory loss of US$0.39 in 2024, a sharp decline from a profit over the last year. Before this earnings announcement, the analysts had been modelling revenues of US$31.2m and losses of US$0.24 per share in 2024. Ergo, there's been a clear change in sentiment, with the analysts lifting this year's revenue estimates, while at the same time increasing their loss per share numbers to reflect the cost of achieving this growth.

There was no major change to the consensus price target of US$6.88, with growing revenues seemingly enough to offset the concern of growing losses. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic SCYNEXIS analyst has a price target of US$8.00 per share, while the most pessimistic values it at US$6.00. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We would highlight that revenue is expected to reverse, with a forecast 75% annualised decline to the end of 2024. That is a notable change from historical growth of 83% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 9.3% per year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - SCYNEXIS is expected to lag the wider industry.

The Bottom Line

The most important thing to note is the forecast of increased losses next year, suggesting all may not be well at SCYNEXIS. Fortunately, they also upgraded their revenue estimates, although our data indicates it is expected to perform worse than the wider industry. The consensus price target held steady at US$6.88, with the latest estimates not enough to have an impact on their price targets.

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 SCYNEXIS going out to 2026, and you can see them free on our platform here..

That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 4 warning signs with SCYNEXIS (at least 1 which makes us a bit uncomfortable) , and understanding these should be part of your investment process.

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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.