Yahoo Finance Industry Analysts Just Made A Captivating Upgrade To Their Arcutis Biotherapeutics, Inc. (NASDAQ:ARQT) Revenue Forecasts
Arcutis Biotherapeutics, Inc. (NASDAQ:ARQT) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's statutory forecasts. The analysts have sharply increased their revenue numbers, with a view that Arcutis Biotherapeutics will make substantially more sales than they'd previously expected.
Following the upgrade, the most recent consensus for Arcutis Biotherapeutics from its six analysts is for revenues of US$117m in 2024 which, if met, would be a sizeable 97% increase on its sales over the past 12 months. Losses are forecast to narrow 3.2% to US$2.21 per share. However, before this estimates update, the consensus had been expecting revenues of US$106m and US$2.35 per share in losses. So there's been quite a change-up of views after the recent consensus updates, with the analysts making a sizeable increase to their revenue forecasts while also reducing the estimated loss as the business grows towards breakeven.
Check out our latest analysis for Arcutis Biotherapeutics
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Arcutis Biotherapeutics' past performance and to peers in the same industry. We can infer from the latest estimates that forecasts expect a continuation of Arcutis Biotherapeutics'historical trends, as the 97% annualised revenue growth to the end of 2024 is roughly in line with the 100% annual revenue growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 17% per year. So although Arcutis Biotherapeutics is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.
The Bottom Line
The most important thing here is that analysts reduced their loss per share estimates for this year, reflecting increased optimism around Arcutis Biotherapeutics' prospects. Fortunately, analysts also upgraded their revenue estimates, and our data indicates sales are expected to perform better than the wider market. Seeing the dramatic upgrade to this year's forecasts, it might be time to take another look at Arcutis Biotherapeutics.
Analysts are definitely bullish on Arcutis Biotherapeutics, but no company is perfect. Indeed, you should know that there are several potential concerns to be aware of, including major dilution from new stock issuance in the past year. For more information, you can click through to our platform to learn more about this and the 2 other warning signs we've identified .
Another way to search for interesting companies that could be reaching an inflection point is to track whether management are buying or selling, with our free list of growing companies that insiders are buying.
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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.
