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Veru Inc. (NASDAQ:VERU) came out with its quarterly results last week, and we wanted to see how the business is performing and what industry forecasters think of the company following this report. Veru beat revenue forecasts by a solid 13%, hitting US$4.0m. Statutory losses also blew out, with the loss per share reaching US$0.07, some 21% bigger than the analysts expected. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
Check out our latest analysis for Veru
Taking into account the latest results, the current consensus, from the five analysts covering Veru, is for revenues of US$13.2m in 2025. This implies a discernible 6.6% reduction in Veru's revenue over the past 12 months. Losses are expected to increase substantially, hitting US$0.28 per share. Before this earnings announcement, the analysts had been modelling revenues of US$12.0m and losses of US$0.29 per share in 2025. We can see there's definitely been a change in sentiment in this update, with the analysts administering a sizeable upgrade to next year's revenue estimates, while at the same time reducing their loss estimates.
Despite these upgrades,the analysts have not made any major changes to their price target of US$3.40, implying that their latest estimates don't have a long term impact on what they think the stock is worth. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Veru, with the most bullish analyst valuing it at US$5.00 and the most bearish at US$1.00 per share. With such a wide range in price targets, analysts are almost certainly betting on widely divergent outcomes in the underlying business. With this in mind, we wouldn't rely too heavily the consensus price target, as it is just an average and analysts clearly have some deeply divergent views on the business.
Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. One thing that stands out from these estimates is that shrinking revenues are expected to moderate over the period ending 2025 compared to the historical decline of 14% per annum 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 revenue grow 6.3% per year. So while a broad number of companies are forecast to grow, unfortunately Veru is expected to see its revenue affected worse than other companies in the industry.