Analysts Have Just Cut Their ARS Pharmaceuticals, Inc. (NASDAQ:SPRY) Revenue Estimates By 15%

Today is shaping up negative for ARS Pharmaceuticals, Inc. (NASDAQ:SPRY) shareholders, with the analysts delivering a substantial negative revision to this year's forecasts. There was a fairly draconian cut to their revenue estimates, perhaps an implicit admission that previous forecasts were much too optimistic.

This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality.

Following the downgrade, the consensus from six analysts covering ARS Pharmaceuticals is for revenues of US$71m in 2025, implying a substantial 27% decline in sales compared to the last 12 months. Prior to the latest estimates, the analysts were forecasting revenues of US$83m in 2025. The consensus view seems to have become more pessimistic on ARS Pharmaceuticals, noting the measurable cut to revenue estimates in this update.

Check out our latest analysis for ARS Pharmaceuticals

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. We would highlight that sales are expected to reverse, with a forecast 34% annualised revenue decline to the end of 2025. That is a notable change from historical growth of 141% over the last three years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 17% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - ARS Pharmaceuticals is expected to lag the wider industry.

The Bottom Line

The clear low-light was that analysts slashing their revenue forecasts for ARS Pharmaceuticals this year. They also expect company revenue to perform worse than the wider market. Overall, given the drastic downgrade to this year's forecasts, we'd be feeling a little more wary of ARS Pharmaceuticals going forwards.

Looking for more information? At least one of ARS Pharmaceuticals' six analysts has provided estimates out to 2027, which can be seen for 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 with high insider ownership.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.