Yahoo Finance Downgrade: Here's How Analysts See RVL Pharmaceuticals plc (NASDAQ:RVLP) Performing In The Near Term
The analysts covering RVL Pharmaceuticals plc (NASDAQ:RVLP) delivered a dose of negativity to shareholders today, by making a substantial revision to their statutory forecasts for this year. Revenue and earnings per share (EPS) forecasts were both revised downwards, with analysts seeing grey clouds on the horizon.
Following the latest downgrade, RVL Pharmaceuticals' four analysts currently expect revenues in 2023 to be US$36m, approximately in line with the last 12 months. Losses are predicted to fall substantially, shrinking 24% to US$0.52 per share. Yet prior to the latest estimates, the analysts had been forecasting revenues of US$49m and losses of US$0.40 per share in 2023. So there's been quite a change-up of views after the recent consensus updates, with the analysts making a serious cut to their revenue forecasts while also expecting losses per share to increase.
Check out our latest analysis for RVL Pharmaceuticals
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the RVL Pharmaceuticals' past performance and to peers in the same industry. One thing that stands out from these estimates is that shrinking revenues are expected to moderate over the period ending 2023 compared to the historical decline of 49% per annum over the past five years. Compare this against analyst estimates for companies in the broader industry, which suggest that revenues (in aggregate) are expected to grow 7.5% annually. So it's pretty clear that, while it does have declining revenues, the analysts also expect RVL Pharmaceuticals to suffer worse than the wider industry.
The Bottom Line
The most important thing to note from this downgrade is that the consensus increased its forecast losses this year, suggesting all may not be well at RVL Pharmaceuticals. Unfortunately analysts also downgraded their revenue estimates, and industry data suggests that RVL Pharmaceuticals' revenues are expected to grow slower than the wider market. After a cut like that, investors could be forgiven for thinking analysts are a lot more bearish on RVL Pharmaceuticals, and a few readers might choose to steer clear of the stock.
Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. We have estimates - from multiple RVL Pharmaceuticals analysts - going out to 2025, and you can see them 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 that insiders are buying.
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.
