Advertisement

Earnings Beat: ImmunoGen, Inc. (NASDAQ:IMGN) Just Beat Analyst Forecasts, And Analysts Have Been Lifting Their Forecasts

ImmunoGen, Inc. (NASDAQ:IMGN) investors will be delighted, with the company turning in some strong numbers with its latest results. The results overall were pretty good, with revenues of US$18m exceeding expectations and statutory losses coming in at justUS$0.13 per share, some 30% below what the analysts had forecast. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

See our latest analysis for ImmunoGen

earnings-and-revenue-growth
earnings-and-revenue-growth

After the latest results, the consensus from ImmunoGen's ten analysts is for revenues of US$56.6m in 2021, which would reflect a disturbing 38% decline in sales compared to the last year of performance. Losses are forecast to balloon 65% to US$0.70 per share. Yet prior to the latest earnings, the analysts had been forecasting revenues of US$48.2m and losses of US$0.78 per share in 2021. We can see there's definitely been a change in sentiment in this update, with the analysts administering a sizeable upgrade to next year's revenue estimates, while at the same time reducing their loss estimates.

It will come as no surprise to learn thatthe analysts have increased their price target for ImmunoGen 14% to US$9.07on the back of these upgrades. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic ImmunoGen analyst has a price target of US$14.00 per share, while the most pessimistic values it at US$5.50. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.

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. These estimates imply that sales are expected to slow, with a forecast revenue decline of 38%, a significant reduction from annual growth of 2.8% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 21% next year. It's pretty clear that ImmunoGen's revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The most obvious conclusion is that the analysts made no changes to their forecasts for a loss next year. Fortunately, they also upgraded their revenue estimates, although our data indicates sales are expected to perform worse than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for ImmunoGen going out to 2024, and you can see them free on our platform here..

Before you take the next step you should know about the 3 warning signs for ImmunoGen that we have uncovered.

This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com.