Y-mAbs Therapeutics, Inc. (NASDAQ:YMAB) just released its latest quarterly results and things are looking bullish. The results were impressive, with revenues of US$11m exceeding analyst forecasts by 49%, and statutory losses of US$0.53 were likewise much smaller than the analysts had forecast. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
Taking into account the latest results, the current consensus from Y-mAbs Therapeutics' seven analysts is for revenues of US$58.7m in 2021, which would reflect a major 58% increase on its sales over the past 12 months. Losses are expected to hold steady at around US$1.01. Before this earnings announcement, the analysts had been modelling revenues of US$60.2m and losses of US$1.20 per share in 2021. While the revenue estimates fell, sentiment seems to have improved, with the analysts making a cut to losses per share in particular.
There was no major change to the US$55.57average price target, suggesting that the adjustments to revenue and earnings are not expected to have a long-term impact on the business. 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. There are some variant perceptions on Y-mAbs Therapeutics, with the most bullish analyst valuing it at US$68.00 and the most bearish at US$41.00 per share. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.
The Bottom Line
The most important thing to take away is that the analysts reconfirmed their loss per share estimates for next year. Regrettably, they also downgraded their revenue estimates, but the latest forecasts still imply the business will grow faster than the wider industry. Even so, earnings are more important to the intrinsic value of the business. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.
With that in mind, we wouldn't be too quick to come to a conclusion on Y-mAbs Therapeutics. Long-term earnings power is much more important than next year's profits. We have forecasts for Y-mAbs Therapeutics going out to 2023, and you can see them free on our platform here.
However, before you get too enthused, we've discovered 2 warning signs for Y-mAbs Therapeutics that you should be aware of.
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