Pharma Mar, S.A. (BME:PHM) Just Released Its Third-Quarter Results And Analysts Are Updating Their Estimates
Shareholders might have noticed that Pharma Mar, S.A. (BME:PHM) filed its third-quarter result this time last week. The early response was not positive, with shares down 2.5% to €67.50 in the past week. The results were positive, with revenue coming in at €54m, beating analyst expectations by 7.4%. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
Following the latest results, Pharma Mar's seven analysts are now forecasting revenues of €302.2m in 2027. This would be a sizeable 27% improvement in revenue compared to the last 12 months. Per-share earnings are expected to surge 25% to €4.93. Yet prior to the latest earnings, the analysts had been anticipated revenues of €315.1m and earnings per share (EPS) of €5.89 in 2027. From this we can that sentiment has definitely become more bearish after the latest results, leading to lower revenue forecasts and a substantial drop in earnings per share estimates.
View our latest analysis for Pharma Mar
The analysts made no major changes to their price target of €101, suggesting the downgrades are not expected to have a long-term impact on Pharma Mar's valuation. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on Pharma Mar, with the most bullish analyst valuing it at €125 and the most bearish at €80.00 per share. 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.
One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. For example, we noticed that Pharma Mar's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 21% growth to the end of 2027 on an annualised basis. That is well above its historical decline of 0.3% a year over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 17% annually. Not only are Pharma Mar's revenues expected to improve, it seems that the analysts are also expecting it to grow faster than the wider industry.
The Bottom Line
The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Regrettably, they also downgraded their revenue estimates, but the latest forecasts still imply the business will grow faster 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.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Pharma Mar going out to 2028, and you can see them free on our platform here..
You should always think about risks though. Case in point, we've spotted 1 warning sign for Pharma Mar you should be aware of.
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