Analysts Just Published A Bright New Outlook For Precision BioSciences, Inc.'s (NASDAQ:DTIL)
Celebrations may be in order for Precision BioSciences, Inc. (NASDAQ:DTIL) shareholders, with the analysts delivering a significant upgrade to their statutory estimates for the company. The consensus statutory numbers for both revenue and earnings per share (EPS) increased, with their view clearly much more bullish on the company's business prospects.
After the upgrade, the consensus from Precision BioSciences' five analysts is for revenues of US$37m in 2023, which would reflect a chunky 20% decline in sales compared to the last year of performance. The loss per share is expected to ameliorate slightly, reducing to US$0.72. However, before this estimates update, the consensus had been expecting revenues of US$30m and US$0.93 per share in losses. So there's been quite a change-up of views after the recent consensus updates, with the analysts making a sizeable increase to their revenue forecasts while also reducing the estimated loss as the business grows towards breakeven.
See our latest analysis for Precision BioSciences
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Precision BioSciences' past performance and to peers in the same industry. We would highlight that sales are expected to reverse, with a forecast 36% annualised revenue decline to the end of 2023. That is a notable change from historical growth of 26% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 15% per year. It's pretty clear that Precision BioSciences' revenues are expected to perform substantially worse than the wider industry.
The Bottom Line
The highlight for us was that the consensus reduced its estimated losses this year, perhaps suggesting Precision BioSciences is moving incrementally towards profitability. Fortunately, they also upgraded their revenue estimates, and are forecasting revenues to grow slower than the wider market. The clear improvement in sentiment should be enough to get most shareholders feeling more optimistic about Precision BioSciences' future.
Still, the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Precision BioSciences analysts - going out to 2023, and you can see them free on our platform here.
Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are upgrading their estimates. So you may also wish to search this free list of stocks that insiders are buying.
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