Ionis Pharmaceuticals, Inc. (NASDAQ:IONS) just released its latest second-quarter results and things are looking bullish. The results were impressive, with revenues of US$225m exceeding analyst forecasts by 46%, and statutory losses of US$0.45 were likewise much smaller than the analysts had forecast. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Ionis Pharmaceuticals after the latest results.

Taking into account the latest results, the 24 analysts covering Ionis Pharmaceuticals provided consensus estimates of US$631.0m revenue in 2024, which would reflect a sizeable 22% decline over the past 12 months. Per-share losses are expected to explode, reaching US$3.71 per share. Before this earnings announcement, the analysts had been modelling revenues of US$602.0m and losses of US$3.77 per share in 2024.

The consensus price target held steady at US$62.59despite the upgrade to revenue forecasts and ongoing losses. The analysts seems to think the business is otherwise performing roughly in line with 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. The most optimistic Ionis Pharmaceuticals analyst has a price target of US$82.00 per share, while the most pessimistic values it at US$37.00. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

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. Over the past five years, revenues have declined around 5.6% annually. Worse, forecasts are essentially predicting the decline to accelerate, with the estimate for an annualised 40% decline in revenue until the end of 2024. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue grow 18% per year. So it's pretty clear that, while it does have declining revenues, the analysts also expect Ionis Pharmaceuticals to suffer worse than the wider industry.

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 upgraded their revenue estimates, although our data indicates it is expected to perform worse than the wider industry. The consensus price target held steady at US$62.59, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on Ionis Pharmaceuticals. Long-term earnings power is much more important than next year's profits. We have forecasts for Ionis Pharmaceuticals going out to 2026, and you can see them free on our platform here.

It is also worth noting that we have found 2 warning signs for Ionis Pharmaceuticals that you need to take into consideration.

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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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