The quarterly results of Mirum Pharmaceuticals, Inc. (NASDAQ: MIRM) were released last week, making it a good time to review its performance. Revenue was 499% higher than analysts’ model forecast, at US $ 11 million, although statutory losses swelled 217% to US $ 1.45, which is much worse than expected. Profits are an important time for investors because they can follow a company’s performance, look at what analysts are forecasting for next year, and see if there has been a change in sentiment towards the company. Readers will be happy to know that we have aggregated the latest statutory forecast to see if analysts have changed their minds on Mirum Pharmaceuticals after the latest results.
Check out our latest review for Mirum Pharmaceuticals
Based on the latest results, the most recent consensus for Mirum Pharmaceuticals of seven analysts is for 2021 revenue of US $ 37.0 million, which, if achieved, would represent a significant increase of 237 million. % of its sales in the last 12 months. Losses are expected to decline 2.2% to US $ 5.37 per share. Prior to this latest report, the consensus expected earnings of US $ 38.8 million and US $ 3.83 per share of losses. So it’s pretty clear that analysts have mixed opinions on Mirum Pharmaceuticals after this update; earnings have been lowered and losses per share are expected to increase.
The average price target was broadly unchanged at US $ 49.43, perhaps implicitly signaling that the weaker earnings outlook should not have a long-term impact on valuation. This is not the only conclusion we can draw from this data, however, as some investors also like to factor in the spread in estimates when evaluating analysts’ price targets. Currently, the most bullish analyst values Mirum Pharmaceuticals at US $ 77.00 per share, while the most bearish price at US $ 30.00. Notice the wide gap in analysts’ price targets? This implies for us that there is a fairly wide range of possible scenarios for the underlying activity.
The bottom line
The most important thing to remember is that analysts have increased their estimates of loss per share for the next year. They also lowered their revenue estimates, although industry data suggests Mirum Pharmaceuticals revenue is expected to grow faster than the industry as a whole. There has been no real change to the consensus price target, suggesting that the intrinsic value of the company has not undergone any major changes with the latest estimates.
Continuing on from this reflection, we believe that the company’s long-term outlook is much more relevant than next year’s results. We have estimates – from several analysts at Mirum Pharmaceuticals – up to 2023, and you can see them for free on our platform here.
In addition, you should also educate yourself about the 3 warning signs we spotted with Mirum Pharmaceuticals.
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