La Jolla Pharmaceutical Company (NASDAQ:LJPC) defied analyst predictions to release its quarterly results, which were ahead of market expectations. The results were impressive, with revenues of US$9.1m exceeding analyst forecasts by 40%, and statutory losses of US$0.43 were likewise much smaller than 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on La Jolla Pharmaceutical after the latest results.

See our latest analysis for La Jolla Pharmaceutical

Taking into account the latest results, the most recent consensus for La Jolla Pharmaceutical from dual analysts is for revenues of US$59.6m in 2021 which, if met, would be a major 100% increase on its sales over the past 12 months. Losses are predicted to fall substantially, shrinking 65% to US$0.78. Before this earnings announcement, the analysts had been modelling revenues of US$57.1m and losses of US$1.33 per share in 2021. So it seems there's been a definite increase in optimism about La Jolla Pharmaceutical's future following the latest consensus numbers, with a the loss per share forecasts in particular.

The consensus price target fell 11%, to US$10.67, suggesting that the analysts remain pessimistic on the company, despite the improved earnings and revenue outlook.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the La Jolla Pharmaceutical's past performance and to peers in the same industry. The analysts are definitely expecting La Jolla Pharmaceutical's growth to accelerate, with the forecast 100% growth ranking favourably alongside historical growth of 66% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 21% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect La Jolla Pharmaceutical to grow faster than the wider industry.

The Bottom Line

The most obvious conclusion is that the analysts made no changes to their forecasts for a loss next year. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster 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 La Jolla Pharmaceutical's future valuation.