NewAmsterdam Pharma Company N.V. (NASDAQ:NAMS) last week reported its latest annual results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. It wasn't the greatest result, with ongoing losses and revenues of US$14m falling short of analyst predictions. The losses were a relative bright spot though, with a per-share statutory loss of US$2.19 being moderately smaller than the analysts forecast. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
Taking into account the latest results, the six analysts covering NewAmsterdam Pharma provided consensus estimates of US$11.5m revenue in 2024, which would reflect a considerable 18% decline over the past 12 months. Before this earnings announcement, the analysts had been modelling revenues of US$8.33m and losses of US$2.07 per share in 2024. What's really interesting is that while the consensus made a massive increase in revenue estimates, it no longer provides an earnings per share estimate. What this implies is that after reporting of the latest results, the market believes revenue is more important.
Additionally, the consensus price target for NewAmsterdam Pharma rose 13% to US$33.09, showing a clear increase in optimism from the the analysts involved. 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 NewAmsterdam Pharma, with the most bullish analyst valuing it at US$36.91 and the most bearish at US$28.93 per share. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.
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 revenue is expected to slow, with a forecast annualised decline of 18% by the end of 2024. This indicates a significant reduction from annual growth of 8.8% over the last three years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 18% per year. It's pretty clear that NewAmsterdam Pharma's revenues are expected to perform substantially worse than the wider industry.
The Bottom Line
The highlight for us was that the analysts increased their revenue forecasts for NewAmsterdam Pharma next year. They also upgraded their revenue estimates for next year, even though it is expected to grow slower than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.
At least one of NewAmsterdam Pharma's six analysts has provided estimates out to 2026, which can be seen for free on our platform here.
It is also worth noting that we have found 3 warning signs for NewAmsterdam Pharma that you need to take into consideration.
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