On Friday, Xeris Pharmaceuticals (NASDAQ:XERS) saw its stock price target adjusted by Piper Sandler from the previous $4.00 to a new target of $3.00. Despite the reduction, the firm maintained its Overweight rating on the company's stock.
The adjustment followed Xeris Pharmaceuticals' first-quarter financial performance, which revealed a net loss per share of $0.14 on total revenues of $40.6 million. These figures fell short of the anticipated estimates of a $0.11 loss per share and revenue of $41.8 million.
Xeris also revised its revenue guidance for the year 2024, narrowing the range to $175 million to $200 million, up from the prior forecast of $170 million to $200 million. This updated guidance suggests a midpoint growth rate of approximately 14% in comparison to the company's 2023 revenue.
The company's management remains optimistic about the future, particularly with the progress of Recorlev for the treatment of Cushing's syndrome. Additionally, they report robust volume growth for Gvoke and a resilient performance by Keveyis, even in the face of generic competition. The first quarter of 2024 showed a 3% growth in product sales compared to the same period in the previous year.
Piper Sandler expressed confidence in Xeris Pharmaceuticals' potential for sustainable cash generation and long-term EBITDA growth beyond the current year. The lowered stock price target reflects marginally reduced expectations for Gvoke sales and an increase in projected selling, general, and administrative (SG&A) expenses.
InvestingPro Insights
Following Piper Sandler's recent adjustment of Xeris Pharmaceuticals' price target, insights from InvestingPro reveal additional factors that investors may consider. Xeris Pharmaceuticals is currently navigating through a cash-intensive phase, as indicated by an InvestingPro Tip that highlights the company's rapid cash burn. Analysts have tempered their earnings expectations for the upcoming period, with three analysts revising their estimates downward.
InvestingPro Data underscores the company's financial landscape, showing a market capitalization of $278.72 million and a significant revenue growth rate of 41.18% over the last twelve months as of Q1 2024. Still, the company's adjusted P/E ratio stands at -4.13, reflecting its lack of profitability during this period. Moreover, while the gross profit margin is impressively high at 82.9%, Xeris' operating income margin is negative at -26.25%, indicating expenses outpacing gross profits.
It is worth noting that despite the challenges, Xeris Pharmaceuticals' liquid assets are sufficient to cover short-term obligations, a positive sign of short-term financial health. Yet, the company does not pay dividends, which aligns with its current focus on reinvesting into growth and product development.
For investors seeking a deeper dive into Xeris' financials and future prospects, InvestingPro offers additional insights and analysis. There are five more InvestingPro Tips available for Xeris Pharmaceuticals at Investing.com/pro/XERS. To access these tips and more, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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