Yahoo Finance Intra-Cellular Therapies, Inc. (NASDAQ:ITCI) Just Released Its First-Quarter Earnings: Here's What Analysts Think
Intra-Cellular Therapies, Inc. (NASDAQ:ITCI) investors will be delighted, with the company turning in some strong numbers with its latest results. Results overall were solid, with revenues arriving 2.4% better than analyst forecasts at US$145m. Higher revenues also resulted in substantially lower statutory losses which, at US$0.16 per share, were 2.4% smaller than the analysts expected. 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 gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
See our latest analysis for Intra-Cellular Therapies
Taking into account the latest results, the current consensus from Intra-Cellular Therapies' 16 analysts is for revenues of US$663.0m in 2024. This would reflect a substantial 29% increase on its revenue over the past 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 46% to US$0.57. Before this earnings announcement, the analysts had been modelling revenues of US$661.6m and losses of US$0.63 per share in 2024. It looks like there's been a modest increase in sentiment in the recent updates, with the analysts becoming a bit more optimistic in their predictions for losses per share, even though the revenue numbers were unchanged.
There's been no major changes to the consensus price target of US$90.60, suggesting that reduced loss estimates are not enough to have a long-term positive impact on the stock's valuation. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic Intra-Cellular Therapies analyst has a price target of US$120 per share, while the most pessimistic values it at US$65.00. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.
One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. It's pretty clear that there is an expectation that Intra-Cellular Therapies' revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 40% growth on an annualised basis. This is compared to a historical growth rate of 70% over the past five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 9.3% per year. Even after the forecast slowdown in growth, it seems obvious that Intra-Cellular Therapies is also expected to grow faster than 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. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.
With that in mind, we wouldn't be too quick to come to a conclusion on Intra-Cellular Therapies. Long-term earnings power is much more important than next year's profits. We have forecasts for Intra-Cellular Therapies going out to 2026, and you can see them free on our platform here.
You should always think about risks though. Case in point, we've spotted 1 warning sign for Intra-Cellular Therapies you should be aware of.
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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.
