Yahoo Finance Earnings Update: Pieris Pharmaceuticals, Inc. (NASDAQ:PIRS) Just Reported And Analysts Are Boosting Their Estimates
Pieris Pharmaceuticals, Inc. (NASDAQ:PIRS) just released its latest first-quarter results and things are looking bullish. The results were impressive, with revenues of US$13m exceeding analyst forecasts by 48%, and statutory losses of US$0.07 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 gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
View our latest analysis for Pieris Pharmaceuticals
Following the recent earnings report, the consensus from five analysts covering Pieris Pharmaceuticals is for revenues of US$37.4m in 2020, implying a painful 27% decline in sales compared to the last 12 months. Losses are forecast to balloon 50% to US$0.62 per share. Yet prior to the latest earnings, the analysts had been forecasting revenues of US$35.5m and losses of US$0.71 per share in 2020. So it seems there's been a definite increase in optimism about Pieris Pharmaceuticals' future following the latest consensus numbers, with a the loss per share forecasts in particular.
It will come as no surprise to learn thatthe analysts have increased their price target for Pieris Pharmaceuticals 9.1% to US$8.00 on the back of these upgrades. 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. Currently, the most bullish analyst values Pieris Pharmaceuticals at US$10.00 per share, while the most bearish prices it at US$5.00. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Pieris Pharmaceuticals' past performance and to peers in the same industry. We would highlight that sales are expected to reverse, with the forecast 27% revenue decline a notable change from historical growth of 49% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 24% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Pieris Pharmaceuticals is expected to lag the wider industry.
The Bottom Line
The most obvious conclusion is that the analysts made no changes to their forecasts for a loss next year. They also upgraded their revenue estimates for next year, even though sales are expected to grow slower than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.
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. We have estimates - from multiple Pieris Pharmaceuticals analysts - going out to 2024, and you can see them free on our platform here.
You still need to take note of risks, for example - Pieris Pharmaceuticals has 4 warning signs (and 1 which can't be ignored) we think you should know about.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.
