Analyst Estimates: Here's What Brokers Think Of Leap Therapeutics, Inc. (NASDAQ:LPTX) After Its First-Quarter Report
Leap Therapeutics, Inc. (NASDAQ:LPTX) missed earnings with its latest quarterly results, disappointing overly-optimistic forecasters. It was not a great statutory result, with revenues coming in 87% lower than the analysts predicted. Unsurprisingly, earnings also fell seriously short of forecasts, turning into a per-share loss of US$0.55. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
Check out our latest analysis for Leap Therapeutics
After the latest results, the three analysts covering Leap Therapeutics are now predicting revenues of US$5.49m in 2020. If met, this would reflect a huge 1365% improvement in sales compared to the last 12 months. Losses are predicted to fall substantially, shrinking 43% to US$0.93. Before this earnings announcement, the analysts had been modelling revenues of US$5.49m and losses of US$0.98 per share in 2020. So there seems to have been a moderate uplift in analyst sentiment with the latest consensus release, given the upgrade to loss per share forecasts for this year.
There's been no major changes to the consensus price target of US$4.75, suggesting that reduced loss estimates are not enough to have a long-term positive impact on the stock's valuation. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on Leap Therapeutics, with the most bullish analyst valuing it at US$8.00 and the most bearish at US$2.50 per share. So we wouldn't be assigning too much credibility to analyst price targets in this case, because there are clearly some widely different views on what kind of performance this business can generate. With this in mind, we wouldn't rely too heavily the consensus price target, as it is just an average and analysts clearly have some deeply divergent views on the business.
The Bottom Line
The most important thing to take away is that the analysts reconfirmed their loss per share estimates for next year. 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. The consensus price target held steady at US$4.75, with the latest estimates not enough to have an impact on their price targets.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Leap Therapeutics going out to 2024, and you can see them free on our platform here.
Even so, be aware that Leap Therapeutics is showing 7 warning signs in our investment analysis , and 4 of those are a bit unpleasant...
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