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Industry Analysts Just Upgraded Their Syros Pharmaceuticals, Inc. (NASDAQ:SYRS) Revenue Forecasts By 20%

Simply Wall St
·3 min read

Syros Pharmaceuticals, Inc. (NASDAQ:SYRS) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's statutory forecasts. The consensus estimated revenue numbers rose, with their view now clearly much more bullish on the company's business prospects. Investors have been pretty optimistic on Syros Pharmaceuticals too, with the stock up 16% to US$10.18 over the past week. It will be interesting to see if today's upgrade is enough to propel the stock even higher.

After this upgrade, Syros Pharmaceuticals' seven analysts are now forecasting revenues of US$8.5m in 2020. This would be a huge 118% improvement in sales compared to the last 12 months. Losses are expected to be contained, narrowing 12% from last year to US$1.57. Yet prior to the latest estimates, the analysts had been forecasting revenues of US$7.1m and losses of US$1.64 per share in 2020. 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 Syros Pharmaceuticals

NasdaqGS:SYRS Past and Future Earnings May 11th 2020
NasdaqGS:SYRS Past and Future Earnings May 11th 2020

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. The analysts are definitely expecting Syros Pharmaceuticals'growth to accelerate, with the forecast 118% growth ranking favourably alongside historical growth of 38% per annum over the past three years. Compare this with other companies in the same industry, which are forecast to grow their revenue 22% next year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Syros Pharmaceuticals to grow faster than the wider industry.

The Bottom Line

The highlight for us was that the consensus reduced its estimated losses this year, perhaps suggesting Syros Pharmaceuticals is moving incrementally towards profitability. They also upgraded their revenue estimates for this year, and sales are expected to grow faster 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 Syros Pharmaceuticals.

Still, the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for Syros Pharmaceuticals going out to 2024, 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.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.