Earnings Miss: Coherus BioSciences, Inc. Missed EPS By 14% And Analysts Are Revising Their Forecasts
Coherus BioSciences, Inc. (NASDAQ:CHRS) missed earnings with its latest quarterly results, disappointing overly-optimistic forecasters. Coherus BioSciences missed earnings this time around, with US$114m revenue coming in 8.5% below what the analysts had modelled. Statutory earnings per share (EPS) of US$0.33 also fell short of expectations by 14%. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there’s been a strong change in the company’s prospects, or if it’s business as usual. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
Check out our latest analysis for Coherus BioSciences
Taking into account the latest results, the current consensus, from the seven analysts covering Coherus BioSciences, is for revenues of US$461.2m in 2021, which would reflect a discernible 5.7% reduction in Coherus BioSciences’ sales over the past 12 months. Statutory earnings per share are forecast to dive 58% to US$0.97 in the same period. Before this earnings report, the analysts had been forecasting revenues of US$471.2m and earnings per share (EPS) of US$0.97 in 2021. So it looks like the analysts have become a bit less optimistic after the latest results announcement, with revenues expected to fall even as the company is supposed to maintain EPS.
The average price target was steady at US$30.40even though revenue estimates declined; likely suggesting the analysts place a higher value on earnings. 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. There are some variant perceptions on Coherus BioSciences, with the most bullish analyst valuing it at US$35.00 and the most bearish at US$19.00 per share. This shows there is still a bit of diversity in estimates, but analysts don’t appear to be totally split on the stock as though it might be a success or failure situation.
Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. These estimates imply that sales are expected to slow, with a forecast revenue decline of 5.7%, a significant reduction from annual growth of 46% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 20% next year. It’s pretty clear that Coherus BioSciences’ revenues are expected to perform substantially worse than the wider industry.
The Bottom Line
The most obvious conclusion is that there’s been no major change in the business’ prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Unfortunately, they also downgraded their revenue estimates, and our data indicates revenues are expected to perform worse than the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. Still, earnings are more important to the intrinsic value of the business. 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.
Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year’s earnings. We have estimates – from multiple Coherus BioSciences analysts – going out to 2024, and you can see them free on our platform here.
Don’t forget that there may still be risks. For instance, we’ve identified 3 warning signs for Coherus BioSciences (1 shouldn’t be ignored) you should be aware of.
This article by Simply Wall St is general in nature. 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.
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