US$1.86: That's What Analysts Think Marinus Pharmaceuticals, Inc. (NASDAQ:MRNS) Is Worth After Its Latest Results

In This Article:

It's been a sad week for Marinus Pharmaceuticals, Inc. (NASDAQ:MRNS), who've watched their investment drop 14% to US$0.31 in the week since the company reported its third-quarter result. Despite revenues of US$8.5m falling 9.4% short of expectations, statutory losses of US$0.42 per share were well contained, and in line with analyst models. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Marinus Pharmaceuticals after the latest results.

See our latest analysis for Marinus Pharmaceuticals

earnings-and-revenue-growth
NasdaqGM:MRNS Earnings and Revenue Growth November 15th 2024

Taking into account the latest results, the current consensus from Marinus Pharmaceuticals' nine analysts is for revenues of US$54.9m in 2025. This would reflect a substantial 75% increase on its revenue over the past 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 66% to US$0.86. Yet prior to the latest earnings, the analysts had been forecasting revenues of US$51.3m and losses of US$0.74 per share in 2025. While next year's revenue estimates increased, there was also a notable increase in loss per share expectations, suggesting the consensus has a bit of a mixed view on the stock.

Spiting the revenue upgrading, the average price target fell 78% to US$1.86, clearly signalling that higher forecast losses are a valuation concern. 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. Currently, the most bullish analyst values Marinus Pharmaceuticals at US$4.00 per share, while the most bearish prices it at US$0.50. 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.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We can infer from the latest estimates that forecasts expect a continuation of Marinus Pharmaceuticals'historical trends, as the 56% annualised revenue growth to the end of 2025 is roughly in line with the 48% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 10% per year. So although Marinus Pharmaceuticals is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.

Waiting for permission
Allow microphone access to enable voice search

Try again.