Yahoo Finance Earnings Miss: Pacira BioSciences, Inc. Missed EPS By 17% And Analysts Are Revising Their Forecasts
Investors in Pacira BioSciences, Inc. (NASDAQ:PCRX) had a good week, as its shares rose 9.3% to close at US$29.86 following the release of its quarterly results. It was not a great result overall. While revenues of US$167m were in line with analyst predictions, earnings were less than expected, missing statutory estimates by 17% to hit US$0.19 per share. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
See our latest analysis for Pacira BioSciences
Taking into account the latest results, Pacira BioSciences' ten analysts currently expect revenues in 2024 to be US$694.6m, approximately in line with the last 12 months. Statutory earnings per share are expected to sink 20% to US$1.22 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$692.8m and earnings per share (EPS) of US$1.21 in 2024. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.
The analysts reconfirmed their price target of US$45.36, showing that the business is executing well and in line with expectations. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. The most optimistic Pacira BioSciences analyst has a price target of US$57.00 per share, while the most pessimistic values it at US$36.00. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.
Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that Pacira BioSciences' revenue growth is expected to slow, with the forecast 2.5% annualised growth rate until the end of 2024 being well below the historical 14% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 9.4% annually. Factoring in the forecast slowdown in growth, it seems obvious that Pacira BioSciences is also expected to grow slower than other industry participants.
The Bottom Line
The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Pacira BioSciences' revenue is expected to perform worse than the wider industry. The consensus price target held steady at US$45.36, with the latest estimates not enough to have an impact on their price targets.
Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for Pacira BioSciences going out to 2026, and you can see them free on our platform here..
That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 1 warning sign with Pacira BioSciences , and understanding it should be part of your investment process.
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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.
