In This Article:
Shareholders might have noticed that Legend Biotech Corporation (NASDAQ:LEGN) filed its third-quarter result this time last week. The early response was not positive, with shares down 2.6% to US$39.89 in the past week. The results don't look great, especially considering that statutory losses grew 17% toUS$0.68 per share. Revenues of US$160,205,000 did beat expectations by 9.7%, but it looks like a bit of a cold comfort. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
View our latest analysis for Legend Biotech
Following the latest results, Legend Biotech's 20 analysts are now forecasting revenues of US$1.04b in 2025. This would be a huge 100% improvement in revenue compared to the last 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 55% to US$0.85. Before this latest report, the consensus had been expecting revenues of US$1.02b and US$1.19 per share in losses. Although the revenue estimates have not really changed Legend Biotech'sfuture looks a little different to the past, with a very promising decrease in the loss per share forecasts in particular.
There's been no major changes to the consensus price target of US$82.50, suggesting that reduced loss estimates are not enough to have a long-term positive impact on the stock's valuation. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Legend Biotech, with the most bullish analyst valuing it at US$95.00 and the most bearish at US$60.00 per share. 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.
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. The analysts are definitely expecting Legend Biotech's growth to accelerate, with the forecast 74% annualised growth to the end of 2025 ranking favourably alongside historical growth of 48% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 22% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Legend Biotech is expected to grow much faster than its industry.