Newsflash: Oramed Pharmaceuticals Inc. (NASDAQ:ORMP) Analysts Have Been Trimming Their Revenue Forecasts

Today is shaping up negative for Oramed Pharmaceuticals Inc. (NASDAQ:ORMP) shareholders, with the analysts delivering a substantial negative revision to this year's forecasts. This report focused on revenue estimates, and it looks as though the consensus view of the business has become substantially more conservative. At US$3.71, shares are up 9.4% in the past 7 days. We'd be curious to see if the downgrade is enough to reverse investor sentiment on the business.

Following the latest downgrade, the three analysts covering Oramed Pharmaceuticals provided consensus estimates of US$2.1m revenue in 2020, which would reflect a concerning 24% decline on its sales over the past 12 months. Losses are expected to increase substantially, hitting US$0.80 per share. However, before this estimates update, the consensus had been expecting revenues of US$3.0m and US$0.79 per share in losses. So there's definitely been a change in sentiment in this update, with the analysts administering a substantial haircut to this year's revenue estimates, while at the same time holding losses per share steady.

View our latest analysis for Oramed Pharmaceuticals

Of course, another way to look at these forecasts is to place them into context against the industry itself. These estimates imply that sales are expected to slow, with a forecast revenue decline of 24%, a significant reduction from annual growth of 9.1% over the last three years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 6.0% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Oramed Pharmaceuticals is expected to lag the wider industry.

The Bottom Line

Regrettably, they also downgraded their revenue estimates, and the latest forecasts imply the business will grow sales slower than the wider market. Given the stark change in sentiment, we'd understand if investors became more cautious on Oramed Pharmaceuticals after today.

As you can see, the analysts clearly aren't bullish, and there might be good reason for that. We've identified some potential issues with Oramed Pharmaceuticals' financials, such as dilutive stock issuance over the past year. For more information, you can click here to discover this and the 5 other warning signs we've identified.

Another way to search for interesting companies that could be reaching an inflection point is to track whether management are buying or selling, with our free list of growing companies that insiders are buying.

Love or hate this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com.

This article by Simply Wall St is general in nature. 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. Thank you for reading.