Regeneron Pharmaceuticals, Inc. Just Recorded A 16% EPS Beat: Here's What Analysts Are Forecasting Next
Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) just released its quarterly report and things are looking bullish. It was a decent earnings report, with revenues and statutory earnings per share (EPS) both performing well. Revenues were 10% higher than the analysts had forecast, at US$2.3b, while EPS of US$7.39 beat analyst models by 16%. 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. With this in mind, we’ve gathered the latest statutory forecasts to see what the analysts are expecting for next year.
View our latest analysis for Regeneron Pharmaceuticals
Following the latest results, Regeneron Pharmaceuticals’ 24 analysts are now forecasting revenues of US$10.3b in 2021. This would be a solid 11% improvement in sales compared to the last 12 months. Statutory earnings per share are predicted to soar 24% to US$36.08. In the lead-up to this report, the analysts had been modelling revenues of US$9.90b and earnings per share (EPS) of US$35.47 in 2021. There doesn’t appear to have been a major change in sentiment following the results, other than the modest lift to revenue estimates.
It may not be a surprise to see thatthe analysts have reconfirmed their price target of US$671, implying that the uplift in sales is not expected to greatly contribute to Regeneron Pharmaceuticals’s valuation in the near term. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Regeneron Pharmaceuticals at US$793 per share, while the most bearish prices it at US$500. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.
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. We would highlight that Regeneron Pharmaceuticals’ revenue growth is expected to slow, with forecast 11% increase next year well below the historical 16%p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 21% per year. So it’s pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Regeneron Pharmaceuticals.
The Bottom Line
The most important thing to take away is that there’s been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. They also upgraded their revenue estimates for next year, even though sales are expected to grow slower than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.
Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year’s earnings. At Simply Wall St, we have a full range of analyst estimates for Regeneron Pharmaceuticals going out to 2024, and you can see them free on our platform here..
Don’t forget that there may still be risks. For instance, we’ve identified 1 warning sign for Regeneron Pharmaceuticals that you should be aware of.
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.
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