Analysts Just Made A Huge Upgrade To Their Spectrum Pharmaceuticals, Inc. (NASDAQ:SPPI) Forecasts

Shareholders in Spectrum Pharmaceuticals, Inc. (NASDAQ:SPPI) may be thrilled to learn that the analysts have just delivered a major upgrade to their near-term forecasts. Consensus estimates suggest investors could expect greatly increased statutory revenues and earnings per share, with analysts modelling a real improvement in business performance. Spectrum Pharmaceuticals has also found favour with investors, with the stock up a notable 19% to US$1.30 over the past week. Could this upgrade be enough to drive the stock even higher?

After this upgrade, Spectrum Pharmaceuticals' five analysts are now forecasting revenues of US$67m in 2023. This would be a sizeable 160% improvement in sales compared to the last 12 months. Losses are predicted to fall substantially, shrinking 78% to US$0.075. Yet before this consensus update, the analysts had been forecasting revenues of US$55m and losses of US$0.17 per share in 2023. 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 Spectrum Pharmaceuticals

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. For example, we noticed that Spectrum Pharmaceuticals' rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 258% growth to the end of 2023 on an annualised basis. That is well above its historical decline of 70% a year over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue grow 19% per year. Not only are Spectrum Pharmaceuticals' revenues expected to improve, it seems that the analysts are also expecting it to grow faster than the wider industry.

The Bottom Line

The highlight for us was that the consensus reduced its estimated losses this year, perhaps suggesting Spectrum Pharmaceuticals is moving incrementally towards profitability. 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 Spectrum Pharmaceuticals.

Better yet, Spectrum Pharmaceuticals is expected to break-even soon - within the next few years - according to analyst forecasts, which would be a momentous event for shareholders. For more information, you can click through to our free platform to learn more about these forecasts.

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.