Earnings Update: CRISPR Therapeutics AG (NASDAQ:CRSP) Just Reported And Analysts Are Trimming Their Forecasts
It's shaping up to be a tough period for CRISPR Therapeutics AG (NASDAQ:CRSP), which a week ago released some disappointing quarterly results that could have a notable impact on how the market views the stock. Earnings missed the mark badly, with revenues of US$13m falling 24% short of expectations. Losses correspondingly increased, with a US$1.15 per-share statutory loss some 15% larger than what the analysts expected. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
Taking into account the latest results, the most recent consensus for CRISPR Therapeutics from 15 analysts is for revenues of US$132.5m in 2027. If met, it would imply a major 426% increase on its revenue over the past 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 27% to US$3.46. Before this earnings announcement, the analysts had been modelling revenues of US$154.0m and losses of US$3.30 per share in 2027. There's been a definite change in sentiment in this update, with the analysts administering a notable cut to next year's revenue estimates, while at the same time increasing their loss per share forecasts.
Check out our latest analysis for CRISPR Therapeutics
The average price target fell 13% to US$74.33, implicitly signalling that lower earnings per share are a leading indicator for CRISPR Therapeutics' valuation. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. There are some variant perceptions on CRISPR Therapeutics, with the most bullish analyst valuing it at US$110 and the most bearish at US$44.00 per share. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.
One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. One thing stands out from these estimates, which is that CRISPR Therapeutics is forecast to grow faster in the future than it has in the past, with revenues expected to display 278% annualised growth until the end of 2027. If achieved, this would be a much better result than the 60% annual decline over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue grow 21% per year. Not only are CRISPR Therapeutics' revenues expected to improve, it seems that the analysts are also expecting it to grow faster than the wider industry.
The Bottom Line
The most important thing to take away is that the analysts increased their loss per share estimates for next year. They also downgraded CRISPR Therapeutics' revenue estimates, but industry data suggests that it is expected to grow faster than the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of CRISPR Therapeutics' future valuation.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for CRISPR Therapeutics going out to 2028, and you can see them free on our platform here..
However, before you get too enthused, we've discovered 1 warning sign for CRISPR Therapeutics that you should be aware of.
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