Yahoo Finance BioMarin Pharmaceutical Inc. Beat Analyst Estimates: See What The Consensus Is Forecasting For This Year
Last week, you might have seen that BioMarin Pharmaceutical Inc. (NASDAQ:BMRN) released its first-quarter result to the market. The early response was not positive, with shares down 8.2% to US$82.13 in the past week. Revenues were US$649m, approximately in line with whatthe analysts expected, although statutory earnings per share (EPS) crushed expectations, coming in at US$0.46, an impressive 41% ahead of estimates. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
Check out our latest analysis for BioMarin Pharmaceutical
Taking into account the latest results, the consensus forecast from BioMarin Pharmaceutical's 28 analysts is for revenues of US$2.74b in 2024. This reflects a solid 11% improvement in revenue compared to the last 12 months. Per-share earnings are expected to shoot up 68% to US$1.81. Before this earnings report, the analysts had been forecasting revenues of US$2.76b and earnings per share (EPS) of US$1.59 in 2024. Although the revenue estimates have not really changed, we can see there's been a substantial gain in earnings per share expectations, suggesting that the analysts have become more bullish after the latest result.
The consensus price target was unchanged at US$110, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. 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. The most optimistic BioMarin Pharmaceutical analyst has a price target of US$140 per share, while the most pessimistic values it at US$80.00. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.
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. It's clear from the latest estimates that BioMarin Pharmaceutical's rate of growth is expected to accelerate meaningfully, with the forecast 15% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 8.3% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 18% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that BioMarin Pharmaceutical is expected to grow at about the same rate as the wider industry.
The Bottom Line
The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards BioMarin Pharmaceutical following these results. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. 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.
With that in mind, we wouldn't be too quick to come to a conclusion on BioMarin Pharmaceutical. Long-term earnings power is much more important than next year's profits. We have forecasts for BioMarin Pharmaceutical going out to 2026, and you can see them free on our platform here.
We don't want to rain on the parade too much, but we did also find 1 warning sign for BioMarin Pharmaceutical that you need to be mindful of.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.
