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It's been a pretty great week for Inhibrx, Inc. (NASDAQ:INBX) shareholders, with its shares surging 11% to US$31.25 in the week since its latest second-quarter results. Revenues beat expectations, with US$954k in sales being 16% above estimates. The company still lost US$0.55 per share, tracking roughly in line with expectations. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Inhibrx after the latest results.
See our latest analysis for Inhibrx
After the latest results, the consensus from Inhibrx's three analysts is for revenues of US$2.27m in 2021, which would reflect a sizeable 78% decline in sales compared to the last year of performance. Per-share losses are predicted to creep up to US$2.28. Before this earnings announcement, the analysts had been modelling revenues of US$2.20m and losses of US$2.36 per share in 2021. 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 both revenues and losses per share.
Despite these upgrades,the analysts have not made any major changes to their price target of US$39.25, implying that their latest estimates don't have a long term impact on what they think the stock is worth. 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 Inhibrx at US$44.00 per share, while the most bearish prices it at US$35.00. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Inhibrx is an easy business to forecast or the the analysts are all using similar assumptions.
Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that sales are expected to reverse, with a forecast 95% annualised revenue decline to the end of 2021. That is a notable change from historical growth of 1.8% over the last three years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 10% annually for the foreseeable future. It's pretty clear that Inhibrx's revenues are expected to perform substantially worse than the wider industry.