Analyst Review Alert: Array Biopharma Inc (NASDAQ:ARRY)

Analysts are weighing in on how Array Biopharma Inc (NASDAQ:ARRY) , might perform in the near term. Wall Street analysts have a much favorable assessment of the stock, with a mean rating of 1.5. The stock is rated as buy by 3 analysts, with 4 outperform and 0 hold rating. The rating score is on a scale of 1 to 5 where 1 stands for strong buy and 5 stands for strong sell.

For the current quarter, the 8.00 analysts offering adjusted EPS forecast have a consensus estimate of $-0.14 a share, which would compare with $-0.09 in the same quarter last year. They have a high estimate of $0.09 and a low estimate of $-0.27. Revenue for the period is expected to total nearly $41.51M from $12.32M the year-ago period.

For the full year, 8.00 Wall Street analysts forecast this company would deliver earnings of -0.62 per share, with a high estimate of $-0.38 and a low estimate of $-0.76. It had reported earnings per share of $0.07 in the corresponding quarter of the previous year. Revenue for the period is expected to total nearly $136.26M versus 51.91M in the preceding year.

The analysts project the company to maintain annual growth of around 10.00% percent over the next five years as compared to an average growth rate of 14.87% percent expected for its competitors in the same industry.

Among the 7 analysts Data provided by Thomson/First Call tracks, the 12-month average price target for ARRY is $8.14 but some analysts are projecting the price to go as high as $13.00. If the optimistic analysts are correct, that represents a 269 percent upside potential from the recent closing price of $3.52. Some sell-side analysts, particularly the bearish ones, have called for $6.00 price targets on shares of Array Biopharma Inc (NASDAQ:ARRY) .

In the last reported results, the company reported earnings of $-0.09 per share, while analysts were calling for share earnings of $-0.16. It was an earnings surprise of 43.80%percent. In the matter of earnings surprises, the term Cockroach Effect is often implied. Cockroach Effect is a market theory that suggests that when a company reveals bad news to the public, there may be many more related negative events that have yet to be revealed. In the case of earnings surprises, if a company is suggesting a negative earnings surprise it means there are more to come.

Array BioPharma Inc., a biopharmaceutical company, focuses on the discovery, development, and commercialization of small molecule drugs to treat patients with cancer in North America, Europe, and the Asia Pacific. The companys drugs in Phase III clinical trials include Binimetinib and Encorafenib for the treatment of cancer. Its drug candidates in Phase II clinical trials include Filanesib, a kinesin spindle protein inhibitor for multiple myeloma; ARRY-797, a p38 inhibitor for Lamin A/C-related dilated cardiomyopathy; ASC08/Danoprevir, a protease inhibitor for Hepatitis C virus; ASLAN001/ARRY-543, a pan-HER inhibitor for gastric or breast cancer; Ipatasertib/GDC-0068, an AKT inhibitor for cancer; Motolimod/VTX-2337, a toll-like receptor for cancer; and LY2606368, a chk-1 inhibitor for cancer. The companys Phase Ib drug candidate comprises GDC-0575, a chk-1 inhibitor for cancer; and ONT-380/ARRY-380, a HER2 inhibitor for breast cancer, as well as Phase I drug candidate includes GDC-0994, an ERK inhibitor for cancer and LOXO-101, a PanTrk inhibitor for cancer. Array BioPharma Inc. has collaboration agreements with Biogen Idec MA Inc.; Array and Celgene Corporation and Celgene Alpine Investment Co., LLC; Genentech, Inc.; Loxo Oncology, Inc.; Novartis International Pharmaceutical Ltd.; and Oncothyreon Inc, as well as a collaboration with Dana-Farber Cancer Institute. The company was founded in 1998 and is headquartered in Boulder, Colorado.