Party Time: Brokers Just Made Major Increases To Their Ikena Oncology, Inc. (NASDAQ:IKNA) Earnings Forecasts
Celebrations may be in order for Ikena Oncology, Inc. (NASDAQ:IKNA) shareholders, with the analysts delivering a significant upgrade to their statutory estimates for the company. The analysts greatly increased their revenue estimates, suggesting a stark improvement in business fundamentals.
Following the upgrade, the most recent consensus for Ikena Oncology from its five analysts is for revenues of US$40m in 2023 which, if met, would be a huge 131% increase on its sales over the past 12 months. Losses are presumed to reduce, shrinking 11% from last year to US$1.39. Yet prior to the latest estimates, the analysts had been forecasting revenues of US$29m and losses of US$1.63 per share in 2023. 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.
Check out our latest analysis for Ikena Oncology
Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. It's clear from the latest estimates that Ikena Oncology's rate of growth is expected to accelerate meaningfully, with the forecast 205% annualised revenue growth to the end of 2023 noticeably faster than its historical growth of 34% p.a. over the past three years. Compare this with other companies in the same industry, which are forecast to grow their revenue 7.1% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Ikena Oncology is expected to grow much faster than its industry.
The Bottom Line
The highlight for us was that the consensus reduced its estimated losses this year, perhaps suggesting Ikena Oncology is moving incrementally towards profitability. Fortunately, analysts also upgraded their revenue estimates, and our data indicates sales are expected to perform better than the wider market. With a serious upgrade to expectations, it might be time to take another look at Ikena Oncology.
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 Ikena Oncology going out to 2025, 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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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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