Celebrations may be in order for Arcutis Biotherapeutics, Inc. (NASDAQ:ARQT) shareholders, with the analysts delivering a significant upgrade to their statutory estimates for the company. The revenue forecast for this year has experienced a facelift, with analysts now much more optimistic on its sales pipeline.

After the upgrade, the seven analysts covering Arcutis Biotherapeutics are now predicting revenues of US$164m in 2024. If met, this would reflect a huge 55% improvement in sales compared to the last 12 months. Prior to the latest estimates, the analysts were forecasting revenues of US$117m in 2024. The consensus has definitely become more optimistic, showing a great increase in revenue forecasts.

The consensus price target rose 5.6% to US$19.00, with the analysts clearly more optimistic about Arcutis Biotherapeutics' prospects following this update.

Of course, another way to look at these forecasts is to place them into context against the industry itself. The period to the end of 2024 brings more of the same, according to the analysts, with revenue forecast to display 79% growth on an annualised basis. That is in line with its 98% annual growth 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 revenues grow 18% per year. So it's pretty clear that Arcutis Biotherapeutics is forecast to grow substantially faster than its industry.

The Bottom Line

The most important thing to take away from this upgrade is that analysts lifted their revenue estimates for this year. They're also forecasting more rapid revenue growth than the wider market. There was also an increase in the price target, suggesting that there is more optimism baked into the forecasts than there was previously. Seeing the dramatic upgrade to this year's forecasts, it might be time to take another look at Arcutis Biotherapeutics.

These earnings upgrades look like a sterling endorsement, but before diving in - you should know that we've spotted 3 potential concerns with Arcutis Biotherapeutics, including recent substantial insider selling. For more information, you can click through to our platform to learn more about this and the 2 other concerns we've identified .

Another way to search for interesting companies that could be reaching an inflection point is to track whether management are buying or selling, with our free list of growing companies backed by insiders.

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