Yahoo Finance Broker Revenue Forecasts For Fate Therapeutics, Inc. (NASDAQ:FATE) Are Surging Higher
Celebrations may be in order for Fate Therapeutics, Inc. (NASDAQ:FATE) shareholders, with the analysts delivering a significant upgrade to their statutory estimates for the company. The revenue forecast for this year has experienced a facelift, with analysts now much more optimistic on its sales pipeline. Fate Therapeutics has also found favour with investors, with the stock up a noteworthy 20% to US$3.91 over the past week. We'll be curious to see if these new estimates convince the market to lift the stock price higher still.
Following the latest upgrade, the 15 analysts covering Fate Therapeutics provided consensus estimates of US$11m revenue in 2024, which would reflect a perceptible 7.9% decline on its sales over the past 12 months. Per-share losses are expected to creep up to US$1.63. However, before this estimates update, the consensus had been expecting revenues of US$5.8m and US$1.81 per share in losses. We can see there's definitely been a change in sentiment in this update, with the analysts administering a sizeable upgrade to this year's revenue estimates, while at the same time reducing their loss estimates.
Check out our latest analysis for Fate Therapeutics
Of course, another way to look at these forecasts is to place them into context against the industry itself. These estimates imply that sales are expected to slow, with a forecast annualised revenue decline of 15% by the end of 2024. This indicates a significant reduction from annual growth of 29% 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 24% per year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Fate Therapeutics is expected to lag the wider industry.
The Bottom Line
The highlight for us was that the consensus reduced its estimated losses this year, perhaps suggesting Fate Therapeutics is moving incrementally towards profitability. Fortunately, they also upgraded their revenue estimates, and are forecasting revenues to grow slower 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 Fate Therapeutics.
Analysts are definitely bullish on Fate Therapeutics, but no company is perfect. Indeed, you should know that there are several potential concerns to be aware of, including dilutive stock issuance over the past year. For more information, you can click through to our platform to learn more about this and the 3 other risks we've identified .
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 backed by insiders.
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