Last week, you might have seen that Biohaven Pharmaceutical Holding Company Ltd. (NYSE:BHVN) released its yearly result to the market. The early response was not positive, with shares down 7.6% to US$79.25 in the past week. The statutory results were mixed overall, with revenues of US$64m in line with analyst forecasts, but losses of US$13.06 per share, some 5.5% larger than the analysts were predicting. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
Taking into account the latest results, the most recent consensus for Biohaven Pharmaceutical Holding from eleven analysts is for revenues of US$245.7m in 2021 which, if met, would be a major 286% increase on its sales over the past 12 months. Losses are supposed to decline, shrinking 20% from last year to US$10.49. Before this earnings announcement, the analysts had been modelling revenues of US$234.0m and losses of US$10.15 per share in 2021. So it's pretty clear consensus is mixed on Biohaven Pharmaceutical Holding after the new consensus numbers; while the analysts lifted revenue numbers, they also administered a moderate increase in per-share loss expectations.
The consensus price target stayed unchanged at US$102, seeming to suggest that higher forecast losses are not expected to have a long term impact on the valuation. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Biohaven Pharmaceutical Holding, with the most bullish analyst valuing it at US$125 and the most bearish at US$73.00 per share. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.
The Bottom Line
The most important thing to take away is that the analysts increased their loss per share estimates for next year. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. The consensus price target held steady at US$102, 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. We have forecasts for Biohaven Pharmaceutical Holding going out to 2025, and you can see them free on our platform here.
Don't forget that there may still be risks. For instance, we've identified 4 warning signs for Biohaven Pharmaceutical Holding (2 make us uncomfortable) you should be aware of.
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