C4 Therapeutics, Inc. (NASDAQ:CCCC) Reported Earnings Last Week And Analysts Are Already Upgrading Their Estimates

It's been a pretty great week for C4 Therapeutics, Inc. (NASDAQ:CCCC) shareholders, with its shares surging 13% to US$8.99 in the week since its latest yearly results. It was a moderately negative result overall - revenue fell 3.6% short of analyst estimates at US$21m, and statutory losses were in line with analyst expectations, at US$2.67 per share. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

Check out our latest analysis for C4 Therapeutics

Taking into account the latest results, the current consensus from C4 Therapeutics' nine analysts is for revenues of US$23.9m in 2024. This would reflect a meaningful 15% increase on its revenue over the past 12 months. Losses are expected to hold steady at around US$1.94. Yet prior to the latest earnings, the analysts had been forecasting revenues of US$22.5m and losses of US$2.37 per share in 2024. So it seems there's been a definite increase in optimism about C4 Therapeutics' future following the latest consensus numbers, with a cut to the loss per share forecasts in particular.

Despite these upgrades,the analysts have not made any major changes to their price target of US$15.09, implying that their latest estimates don't have a long term impact on what they think the stock is worth. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on C4 Therapeutics, with the most bullish analyst valuing it at US$60.00 and the most bearish at US$1.00 per share. So we wouldn't be assigning too much credibility to analyst price targets in this case, because there are clearly some widely different views on what kind of performance this business can generate. With this in mind, we wouldn't rely too heavily the consensus price target, as it is just an average and analysts clearly have some deeply divergent views on the business.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the C4 Therapeutics' past performance and to peers in the same industry. The analysts are definitely expecting C4 Therapeutics' growth to accelerate, with the forecast 15% annualised growth to the end of 2024 ranking favourably alongside historical growth of 1.9% per annum over the past five years. Other similar companies in the industry (with analyst coverage) are also forecast to grow their revenue at 17% per year. C4 Therapeutics is expected to grow at about the same rate as its industry, so it's not clear that we can draw any conclusions from its growth relative to competitors.

The Bottom Line

The most important thing to take away is that the analysts reconfirmed their loss per share estimates for next year. They also upgraded their revenue forecasts, although the latest estimates suggest that C4 Therapeutics will grow in line with the overall industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates - from multiple C4 Therapeutics analysts - going out to 2026, and you can see them free on our platform here.

It is also worth noting that we have found 3 warning signs for C4 Therapeutics (1 is a bit unpleasant!) that you need to take into consideration.

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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.