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Today is shaping up negative for Xeris Pharmaceuticals, Inc. (NASDAQ:XERS) shareholders, with the analysts delivering a substantial negative revision to this year's forecasts. Revenue and earnings per share (EPS) forecasts were both revised downwards, with analysts seeing grey clouds on the horizon.
Following the downgrade, the most recent consensus for Xeris Pharmaceuticals from its three analysts is for revenues of US$39m in 2021 which, if met, would be a major 47% increase on its sales over the past 12 months. Losses are expected to be contained, narrowing 11% from last year to US$1.43. Yet prior to the latest estimates, the analysts had been forecasting revenues of US$47m and losses of US$1.10 per share in 2021. Ergo, there's been a clear change in sentiment, with the analysts administering a notable cut to this year's revenue estimates, while at the same time increasing their loss per share forecasts.
View our latest analysis for Xeris Pharmaceuticals
The consensus price target fell 20% to US$8.00, with the analysts clearly concerned about the company following the weaker revenue and earnings outlook.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Xeris Pharmaceuticals' past performance and to peers in the same industry. We can infer from the latest estimates that forecasts expect a continuation of Xeris Pharmaceuticals'historical trends, as the 115% annualised revenue growth to the end of 2021 is roughly in line with the 100% annual revenue growth over the past three years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 3.7% per year. So it's pretty clear that Xeris Pharmaceuticals is forecast to grow substantially faster than its industry.
The Bottom Line
The most important thing to take away is that analysts increased their loss per share estimates for this year. While analysts did downgrade their revenue estimates, these forecasts still imply revenues will perform better than the wider market. With a serious cut to this year's expectations and a falling price target, we wouldn't be surprised if investors were becoming wary of Xeris Pharmaceuticals.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Xeris Pharmaceuticals going out to 2023, and you can see them free on our platform here.