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Last week, you might have seen that BeiGene, Ltd. (NASDAQ:ONC) released its first-quarter result to the market. The early response was not positive, with shares down 9.3% to US$232 in the past week. Although revenues of US$1.1b were in line with analyst expectations, BeiGene surprised on the earnings front, with an unexpected (statutory) profit of US$0.01 per share a nice improvement on the losses that the analystsforecast. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
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Following the latest results, BeiGene's 34 analysts are now forecasting revenues of US$5.09b in 2025. This would be a major 22% improvement in revenue compared to the last 12 months. BeiGene is also expected to turn profitable, with statutory earnings of US$1.55 per share. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$5.09b and earnings per share (EPS) of US$1.48 in 2025. So the consensus seems to have become somewhat more optimistic on BeiGene's earnings potential following these results.
See our latest analysis for BeiGene
There's been no major changes to the consensus price target of US$332, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic BeiGene analyst has a price target of US$393 per share, while the most pessimistic values it at US$259. 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.
Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. It's pretty clear that there is an expectation that BeiGene's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 30% growth on an annualised basis. This is compared to a historical growth rate of 44% over the past five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 18% per year. Even after the forecast slowdown in growth, it seems obvious that BeiGene is also expected to grow faster than the wider industry.