Atea Pharmaceuticals, Inc. Beat Analyst Estimates: See What The Consensus Is Forecasting For This Year

Simply Wall St
·3 min read

It's been a good week for Atea Pharmaceuticals, Inc. (NASDAQ:AVIR) shareholders, because the company has just released its latest first-quarter results, and the shares gained 7.5% to US$22.91. In addition to smashing expectations with revenues of US$66m, Atea Pharmaceuticals delivered a surprise statutory profit of US$0.34 per share, a notable improvement compared to analyst expectations of a loss. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Atea Pharmaceuticals after the latest results.

See our latest analysis for Atea Pharmaceuticals

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Following the latest results, Atea Pharmaceuticals' three analysts are now forecasting revenues of US$1.18b in 2021. This would be a major 927% improvement in sales compared to the last 12 months. Statutory earnings per share are expected to crater 63% to US$0.22 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$1.18b and earnings per share (EPS) of US$0.22 in 2021. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

With the analysts reconfirming their revenue and earnings forecasts, it's surprising to see that the price target rose 43% to US$83.33. It looks as though they previously had some doubts over whether the business would live up to their expectations. 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 Atea Pharmaceuticals, with the most bullish analyst valuing it at US$102 and the most bearish at US$66.00 per share. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Atea Pharmaceuticals shareholders.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Fortunately, they also reconfirmed their revenue numbers, suggesting sales are tracking in line with expectations - and our data suggests that revenues are expected to grow faster than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Atea Pharmaceuticals analysts - going out to 2023, and you can see them free on our platform here.

That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 1 warning sign with Atea Pharmaceuticals , and understanding it should be part of your investment process.

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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