Earnings Update: Arcellx, Inc. (NASDAQ:ACLX) Just Reported And Analysts Are Boosting Their Estimates
Arcellx, Inc. (NASDAQ:ACLX) just released its full-year report and things are looking bullish. Revenue crushed expectations at US$110m, beating expectations by 64%. Arcellx reported a statutory loss of US$1.47 per share, which - although not amazing - was much smaller than the analysts predicted. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
See our latest analysis for Arcellx
After the latest results, the consensus from Arcellx's eleven analysts is for revenues of US$76.7m in 2024, which would reflect a sizeable 30% decline in revenue compared to the last year of performance. Losses are forecast to balloon 46% to US$1.98 per share. Yet prior to the latest earnings, the analysts had been forecasting revenues of US$72.8m and losses of US$2.34 per share in 2024. There's been a pretty noticeable increase in sentiment, with the analysts upgrading revenues and making a notable improvement in loss per share in particular.
It will come as no surprise to learn thatthe analysts have increased their price target for Arcellx 13% to US$75.92on the back of these upgrades. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on Arcellx, with the most bullish analyst valuing it at US$85.00 and the most bearish at US$57.00 per share. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Arcellx shareholders.
Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that revenue is expected to reverse, with a forecast 30% annualised decline to the end of 2024. That is a notable change from historical growth of 79% 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 17% per year. It's pretty clear that Arcellx's revenues are expected to perform substantially worse than the wider industry.
The Bottom Line
The most obvious conclusion is that the analysts made no changes to their forecasts for a loss next year. Fortunately, they also upgraded their revenue estimates, although our data indicates it is expected to perform worse than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Arcellx going out to 2026, and you can see them free on our platform here..
We don't want to rain on the parade too much, but we did also find 4 warning signs for Arcellx (1 is concerning!) that you need to be mindful of.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.
