Aurinia Pharmaceuticals Inc. Just Recorded A 60% EPS Beat: Here's What Analysts Are Forecasting Next

Yahoo

16-05-2025

Aurinia Pharmaceuticals Inc. (NASDAQ:AUPH) investors will be delighted, with the company turning in some strong numbers with its latest results. It was overall a positive result, with revenues beating expectations by 2.3% to hit US$62m. Aurinia Pharmaceuticals also reported a statutory profit of US$0.16, which was an impressive 60% above what the analysts had forecast. 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.
We've discovered 2 warning signs about Aurinia Pharmaceuticals. View them for free.
Following the latest results, Aurinia Pharmaceuticals' six analysts are now forecasting revenues of US$259.0m in 2025. This would be a modest 4.7% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to soar 99% to US$0.59. Before this earnings report, the analysts had been forecasting revenues of US$258.6m and earnings per share (EPS) of US$0.47 in 2025. There was no real change to the revenue estimates, but the analysts do seem more bullish on earnings, given the great increase in earnings per share expectations following these results.
See our latest analysis for Aurinia Pharmaceuticals
The average the analysts price target fell 7.7% to US$10.00, suggesting thatthe analysts have other concerns, and the improved earnings per share outlook was not enough to allay them. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. There are some variant perceptions on Aurinia Pharmaceuticals, with the most bullish analyst valuing it at US$12.00 and the most bearish at US$8.00 per share. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.
Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. It's pretty clear that there is an expectation that Aurinia Pharmaceuticals' revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 6.4% growth on an annualised basis. This is compared to a historical growth rate of 44% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 17% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Aurinia Pharmaceuticals.
The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Aurinia Pharmaceuticals' earnings potential next year. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Aurinia Pharmaceuticals' future valuation.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates - from multiple Aurinia Pharmaceuticals analysts - going out to 2027, and you can see them free on our platform here.
We don't want to rain on the parade too much, but we did also find 2 warning signs for Aurinia Pharmaceuticals that you need to be mindful of.
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