Newsflash: Atara Biotherapeutics, Inc. (NASDAQ:ATRA) Analysts Have Been Trimming Their Revenue Forecasts
One thing we could say about the analysts on Atara Biotherapeutics, Inc. (NASDAQ:ATRA) - they aren't optimistic, having just made a major negative revision to their near-term (statutory) forecasts for the organization. Revenue estimates were cut sharply as analysts signalled a weaker outlook - perhaps a sign that investors should temper their expectations as well.
Following the latest downgrade, the current consensus, from the seven analysts covering Atara Biotherapeutics, is for revenues of US$42m in 2023, which would reflect a painful 41% reduction in Atara Biotherapeutics' sales over the past 12 months. Before the latest update, the analysts were foreseeing US$49m of revenue in 2023. It looks like forecasts have become a fair bit less optimistic on Atara Biotherapeutics, given the substantial drop in revenue estimates.
View our latest analysis for Atara Biotherapeutics
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Atara Biotherapeutics' past performance and to peers in the same industry. We would highlight that sales are expected to reverse, with a forecast 35% annualised revenue decline to the end of 2023. That is a notable change from historical growth of 94% 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 14% per year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Atara Biotherapeutics is expected to lag the wider industry.
The Bottom Line
The clear low-light was that analysts slashing their revenue forecasts for Atara Biotherapeutics next year. They're also anticipating slower revenue growth than the wider market. Given the stark change in sentiment, we'd understand if investors became more cautious on Atara Biotherapeutics after today.
Unsatisfied? At least one of Atara Biotherapeutics' seven analysts has provided estimates out to 2024, which can be seen for free on our platform here.
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.
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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.
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