Spectrum Pharmaceuticals, Inc. (NASDAQ:SPPI) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's statutory forecasts. Consensus estimates suggest investors could expect greatly increased statutory revenues and earnings per share, with the analysts modelling a real improvement in business performance. Investors have been pretty optimistic on Spectrum Pharmaceuticals too, with the stock up 19% to US$1.30 over the past week. It will be interesting to see if today's upgrade is enough to propel the stock even higher.

After the upgrade, the five analysts covering Spectrum Pharmaceuticals are now predicting revenues of US$67m in 2023. If met, this would reflect a huge 160% improvement in sales compared to the last 12 months. Losses are predicted to fall substantially, shrinking 78% to US$0.075. Yet prior to the latest estimates, the analysts had been forecasting revenues of US$55m and losses of US$0.17 per share in 2023. We can see there's definitely been a change in sentiment in this update, with the analysts administering a sizeable upgrade to this year's revenue estimates, while at the same time reducing their loss estimates.

See our latest analysis for Spectrum Pharmaceuticals

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Spectrum Pharmaceuticals' past performance and to peers in the same industry. One thing stands out from these estimates, which is that Spectrum Pharmaceuticals is forecast to grow faster in the future than it has in the past, with revenues expected to display 258% annualised growth until the end of 2023. If achieved, this would be a much better result than the 70% annual decline over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue grow 19% per year. Not only are Spectrum Pharmaceuticals' revenues expected to improve, it seems that the analysts are also expecting it to grow faster than the wider industry.

The Bottom Line

The most important thing here is that analysts reduced their loss per share estimates for this year, reflecting increased optimism around Spectrum Pharmaceuticals' prospects. They also upgraded their revenue estimates for this year, and sales are expected to grow faster than the wider market. The clear improvement in sentiment should be enough to get most shareholders feeling more optimistic about Spectrum Pharmaceuticals' future.