News Flash: Analysts Just Made A Notable Upgrade To Their XOMA Royalty Corporation (NASDAQ:XOMA) Forecasts

XOMA Royalty Corporation (NASDAQ:XOMA) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's forecasts. The consensus estimated revenue numbers rose, with their view now clearly much more bullish on the company's business prospects. The market may be pricing in some blue sky too, with the share price gaining 15% to US$26.46 in the last 7 days. We'll be curious to see if these new estimates convince the market to lift the stock price higher still.

Following the upgrade, the most recent consensus for XOMA Royalty from its three analysts is for revenues of US$26m in 2024 which, if met, would be a sizeable 73% increase on its sales over the past 12 months. The loss per share is expected to ameliorate slightly, reducing to US$1.89. However, before this estimates update, the consensus had been expecting revenues of US$21m and US$1.89 per share in losses. So there's been quite a change-up of views after the recent consensus updates, withthe analysts noticeably increasing their revenue forecasts while also expecting losses per share to hold steady.

See our latest analysis for XOMA Royalty

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the XOMA Royalty's past performance and to peers in the same industry. For example, we noticed that XOMA Royalty's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 200% growth to the end of 2024 on an annualised basis. That is well above its historical decline of 8.3% 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 23% per year. Not only are XOMA Royalty's 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 XOMA Royalty is moving incrementally towards profitability. They also upgraded their revenue estimates for this year, and sales are expected to grow faster than the wider market. Given that analysts appear to be expecting substantial improvement in the sales pipeline, now could be the right time to take another look at XOMA Royalty.

It's great to see the analysts upgrading their estimates, but the biggest highlight to us is that the business is expected to become profitable in the foreseeable future. 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 backed by insiders.

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.