In This Article:
ADC Therapeutics SA (NYSE:ADCT) investors will be delighted, with the company turning in some strong numbers with its latest results. Revenues of US$23m beat estimates by a substantial 30% margin. Unfortunately, ADC Therapeutics also reported a statutory loss of US$0.36 per share, which at least was 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on ADC Therapeutics after the latest results.
We've discovered 3 warning signs about ADC Therapeutics. View them for free.
Following the latest results, ADC Therapeutics' six analysts are now forecasting revenues of US$77.5m in 2025. This would be an okay 2.2% improvement in revenue compared to the last 12 months. Losses are expected to increase slightly, to US$1.60 per share. Before this earnings announcement, the analysts had been modelling revenues of US$73.4m and losses of US$1.62 per share in 2025.
View our latest analysis for ADC Therapeutics
The consensus price target fell 6.8% to US$8.20as the analysts signal that ongoing losses are likely to weigh on the stock price. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on ADC Therapeutics, with the most bullish analyst valuing it at US$10.00 and the most bearish at US$7.00 per share. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await ADC Therapeutics shareholders.
Of course, another way to look at these forecasts is to place them into context against the industry itself. It's pretty clear that there is an expectation that ADC Therapeutics' revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 3.0% growth on an annualised basis. This is compared to a historical growth rate of 31% over the past five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 17% annually. Factoring in the forecast slowdown in growth, it seems obvious that ADC Therapeutics is also expected to grow slower than other industry participants.