Latest news with #RigelPharmaceuticals
Yahoo
15-03-2025
- Business
- Yahoo
Statutory Profit Doesn't Reflect How Good Rigel Pharmaceuticals' (NASDAQ:RIGL) Earnings Are
Even though Rigel Pharmaceuticals, Inc. (NASDAQ:RIGL ) posted strong earnings, investors appeared to be underwhelmed. We did some digging and actually think they are being unnecessarily pessimistic. View our latest analysis for Rigel Pharmaceuticals One key financial ratio used to measure how well a company converts its profit to free cash flow (FCF) is the accrual ratio. The accrual ratio subtracts the FCF from the profit for a given period, and divides the result by the average operating assets of the company over that time. This ratio tells us how much of a company's profit is not backed by free cashflow. As a result, a negative accrual ratio is a positive for the company, and a positive accrual ratio is a negative. While having an accrual ratio above zero is of little concern, we do think it's worth noting when a company has a relatively high accrual ratio. That's because some academic studies have suggested that high accruals ratios tend to lead to lower profit or less profit growth. For the year to December 2024, Rigel Pharmaceuticals had an accrual ratio of -0.63. That implies it has very good cash conversion, and that its earnings in the last year actually significantly understate its free cash flow. In fact, it had free cash flow of US$31m in the last year, which was a lot more than its statutory profit of US$17.5m. Notably, Rigel Pharmaceuticals had negative free cash flow last year, so the US$31m it produced this year was a welcome improvement. That might leave you wondering what analysts are forecasting in terms of future profitability. Luckily, you can click here to see an interactive graph depicting future profitability, based on their estimates. Happily for shareholders, Rigel Pharmaceuticals produced plenty of free cash flow to back up its statutory profit numbers. Based on this observation, we consider it possible that Rigel Pharmaceuticals' statutory profit actually understates its earnings potential! And it's also positive that the company showed enough improvement to book a profit this year, after losing money last year. Of course, we've only just scratched the surface when it comes to analysing its earnings; one could also consider margins, forecast growth, and return on investment, among other factors. If you want to do dive deeper into Rigel Pharmaceuticals, you'd also look into what risks it is currently facing. Every company has risks, and we've spotted 2 warning signs for Rigel Pharmaceuticals you should know about. This note has only looked at a single factor that sheds light on the nature of Rigel Pharmaceuticals' profit. But there are plenty of other ways to inform your opinion of a company. Some people consider a high return on equity to be a good sign of a quality business. While it might take a little research on your behalf, you may find this free collection of companies boasting high return on equity, or this list of stocks with significant insider holdings to be useful. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) 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. Sign in to access your portfolio
Yahoo
07-03-2025
- Business
- Yahoo
Rigel Pharmaceuticals, Inc. Just Beat Earnings Expectations: Here's What Analysts Think Will Happen Next
Rigel Pharmaceuticals, Inc. (NASDAQ:RIGL) shareholders are probably feeling a little disappointed, since its shares fell 9.6% to US$19.70 in the week after its latest annual results. It looks like a credible result overall - although revenues of US$179m were what the analysts expected, Rigel Pharmaceuticals surprised by delivering a (statutory) profit of US$0.99 per share, an impressive 127% above what was 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year. View our latest analysis for Rigel Pharmaceuticals Following the latest results, Rigel Pharmaceuticals' six analysts are now forecasting revenues of US$197.8m in 2025. This would be a decent 10% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to climb 18% to US$1.16. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$204.9m and earnings per share (EPS) of US$1.28 in 2025. The analysts are less bullish than they were before these results, given the reduced revenue forecasts and the small dip in earnings per share expectations. What's most unexpected is that the consensus price target rose 5.2% to US$33.67, strongly implying the downgrade to forecasts is not expected to be more than a temporary blip. 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. The most optimistic Rigel Pharmaceuticals analyst has a price target of US$57.00 per share, while the most pessimistic values it at US$20.00. With such a wide range in price targets, analysts are almost certainly betting on widely divergent outcomes in the underlying business. 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. Of course, another way to look at these forecasts is to place them into context against the industry itself. It's clear from the latest estimates that Rigel Pharmaceuticals' rate of growth is expected to accelerate meaningfully, with the forecast 10% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 8.3% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to see revenue growth of 20% annually. It seems obvious that, while the future growth outlook is brighter than the recent past, Rigel Pharmaceuticals is expected to grow slower than the wider industry. The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Rigel Pharmaceuticals. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time. With that in mind, we wouldn't be too quick to come to a conclusion on Rigel Pharmaceuticals. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Rigel Pharmaceuticals going out to 2027, and you can see them free on our platform here.. However, before you get too enthused, we've discovered 3 warning signs for Rigel Pharmaceuticals that you should be aware of. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) 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. Sign in to access your portfolio
Yahoo
25-02-2025
- Business
- Yahoo
Rigel Announces Conference Call and Webcast to Report Fourth Quarter and Full Year 2024 Financial Results and Business Update
SOUTH SAN FRANCISCO, Calif., Feb. 25, 2025 /PRNewswire/ -- Rigel Pharmaceuticals, Inc. (Nasdaq: RIGL) today announced that it will report its fourth quarter and full year 2024 financial results after market close on Tuesday, March 4, 2025. Rigel senior management will follow the announcement with a live conference call and webcast at 4:30 p.m. Eastern Time (1:30 p.m. Pacific Time) to discuss the financial results and give an update on the business. Participants can access the live conference call by dialing 877-407-3088 (domestic) or 201-389-0927 (international). The conference call and accompanying slides will also be webcast live and can be accessed from the Investor Relations section of the company's website at The webcast will be archived and available for replay for 90 days after the call via the Rigel website. About RigelRigel Pharmaceuticals, Inc. (Nasdaq: RIGL) is a biotechnology company dedicated to discovering, developing and providing novel therapies that significantly improve the lives of patients with hematologic disorders and cancer. Founded in 1996, Rigel is based in South San Francisco, California. For more information on Rigel, the Company's marketed products and pipeline of potential products, visit Contact for Investors & Media: Investors:Rigel Pharmaceuticals, Inc.650.624.1232ir@ Media:David Rosen Argot Partners Phone: 646.461.6387Email: View original content to download multimedia: SOURCE Rigel Pharmaceuticals, Inc.
