It's been a good week for Zevra Therapeutics, Inc. (NASDAQ:ZVRA) shareholders, because the company has just released its latest quarterly results, and the shares gained 2.4% to US$10.53. It looks like a credible result overall - although revenues of US$38m were what the analysts expected, Zevra Therapeutics surprised by delivering a (statutory) profit of US$0.26 per share, an impressive 69% above what was forecast. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Zevra Therapeutics after the latest results.
Taking into account the latest results, the consensus forecast from Zevra Therapeutics' eight analysts is for revenues of US$176.5m in 2027. This reflects a meaningful 19% improvement in revenue compared to the last 12 months. Statutory earnings per share are expected to crater 29% to US$0.90 in the same period. Before this earnings report, the analysts had been forecasting revenues of US$177.7m and earnings per share (EPS) of US$0.90 in 2027. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.
See our latest analysis for Zevra Therapeutics
The analysts reconfirmed their price target of US$25.25, showing that the business is executing well and in line with expectations. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Zevra Therapeutics, with the most bullish analyst valuing it at US$35.00 and the most bearish at US$20.00 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.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Zevra Therapeutics' past performance and to peers in the same industry. It's pretty clear that there is an expectation that Zevra Therapeutics' revenue growth will slow down substantially, with revenues to the end of 2027 expected to display 15% growth on an annualised basis. This is compared to a historical growth rate of 50% 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 8.3% annually. Even after the forecast slowdown in growth, it seems obvious that Zevra Therapeutics is also expected to grow faster than the wider industry.
The Bottom Line
The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Zevra Therapeutics going out to 2028, 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 1 warning sign for Zevra Therapeutics that you need to be mindful of.
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