Shareholders in Theravance Biopharma, Inc. (NASDAQ:TBPH) may be thrilled to learn that the analysts have just delivered a major upgrade to their near-term forecasts. The analysts have sharply increased their revenue numbers, with a view that Theravance Biopharma will make substantially more sales than they’d previously expected. The market seems to be pricing in some improvement in the business too, with the stock up 10.0% over the past week, closing at US$9.61. It will be interesting to see if this latest upgrade is enough to kickstart further buying interest in the stock.
Following the upgrade, the most recent consensus for Theravance Biopharma from its eight analysts is for revenues of US$97m in 2022 which, if met, would be a sizeable 85% increase on its sales over the past 12 months. Before the latest update, the analysts were foreseeing US$63m of revenue in 2022. The consensus has definitely become more optimistic, showing a considerable lift to revenue forecasts.
Of course, another way to look at these forecasts is to place them into context against the industry itself. It’s clear from the latest estimates that Theravance Biopharma’s rate of growth is expected to accelerate meaningfully, with the forecast 242% annualised revenue growth to the end of 2022 noticeably faster than its historical growth of 15% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 3.5% per year. Factoring in the forecast acceleration in revenue, it’s pretty clear that Theravance Biopharma is expected to grow much faster than its industry.
The Bottom Line
The highlight for us was that analysts increased their revenue forecasts for Theravance Biopharma this year. Analysts also expect revenues to grow faster than the wider market. Given that analysts appear to be expecting substantial improvement in the sales pipeline, now could be the right time to take another look at Theravance Biopharma.
These earnings upgrades look like a sterling endorsement, but before diving in – you should know that we’ve spotted 3 potential warning signs with Theravance Biopharma, including recent substantial insider selling. For more information, you can click through to our platform to learn more about this and the 2 other warning signs we’ve identified .
Another way to search for interesting companies that could be reaching an inflection point is to track whether management are buying or selling, with our free list of growing companies that insiders are buying.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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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