Crinetics Pharmaceuticals, Inc. (NASDAQ:CRNX) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's statutory forecasts. The analysts have sharply increased their revenue numbers, with a view that Crinetics Pharmaceuticals will make substantially more sales than they'd previously expected.
After the upgrade, the consensus from Crinetics Pharmaceuticals' five analysts is for revenues of US$54k in 2020, which would reflect a concerning 94% decline in sales compared to the last year of performance. Before the latest update, the analysts were foreseeing US$48k of revenue in 2020. It looks like there's been a clear increase in optimism around Crinetics Pharmaceuticals, given the substantial gain in revenue forecasts.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Crinetics Pharmaceuticals' past performance and to peers in the same industry. Over the past year, revenues have declined around 62% annually. Worse, forecasts are essentially predicting the decline to accelerate, with the estimate for a 94% decline in revenue next year. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue grow 25% per year. So while a broad number of companies are forecast to grow, unfortunately Crinetics Pharmaceuticals is expected to see its sales affected worse than other companies in the industry.
The Bottom Line
The highlight for us was that analysts increased their revenue forecasts for Crinetics Pharmaceuticals this year. They're also anticipating slower revenue growth than the wider market. Given that analysts appear to be expecting substantial improvement in the sales pipeline, now could be the right time to take another look at Crinetics Pharmaceuticals.
Analysts are definitely bullish on Crinetics Pharmaceuticals, but no company is perfect. Indeed, you should know that there are several potential concerns to be aware of, including dilutive stock issuance over the past year. For more information, you can click through to our platform to learn more about this and the 3 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.
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.
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