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One thing we could say about the analysts on Iovance Biotherapeutics, Inc. (NASDAQ:IOVA) - they aren't optimistic, having just made a major negative revision to their near-term (statutory) forecasts for the organization. Revenue and earnings per share (EPS) forecasts were both revised downwards, with the analysts seeing grey clouds on the horizon.
Following the downgrade, the latest consensus from Iovance Biotherapeutics' twelve analysts is for revenues of US$286m in 2025, which would reflect a major 35% improvement in sales compared to the last 12 months. Per-share losses are expected to creep up to US$1.16. However, before this estimates update, the consensus had been expecting revenues of US$453m and US$0.80 per share in losses. Ergo, there's been a clear change in sentiment, with the analysts administering a notable cut to this year's revenue estimates, while at the same time increasing their loss per share forecasts.
See our latest analysis for Iovance Biotherapeutics
The consensus price target fell 39% to US$12.20, implicitly signalling that lower earnings per share are a leading indicator for Iovance Biotherapeutics' valuation.
Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We would highlight that Iovance Biotherapeutics' revenue growth is expected to slow, with the forecast 48% annualised growth rate until the end of 2025 being well below the historical 99% p.a. growth over the last 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 Iovance Biotherapeutics is also expected to grow faster than the wider industry.
The Bottom Line
The most important thing to take away is that analysts increased their loss per share estimates for this year. Unfortunately, analysts also downgraded their revenue estimates, although our data indicates revenues are expected to perform better than the wider market. After such a stark change in sentiment from analysts, we'd understand if readers now felt a bit wary of Iovance Biotherapeutics.
That said, the analysts might have good reason to be negative on Iovance Biotherapeutics, given dilutive stock issuance over the past year. For more information, you can click here to discover this and the 2 other warning signs we've identified.