News Flash: Analysts Just Made A Sizeable Upgrade To Their Arcellx, Inc. (NASDAQ:ACLX) Forecasts

Shareholders in Arcellx, Inc. (NASDAQ:ACLX) may be thrilled to learn that the analysts have just delivered a major upgrade to their near-term forecasts. The analysts have sharply increased their revenue numbers, with a view that Arcellx will make substantially more sales than they'd previously expected.

Following the latest upgrade, the 14 analysts covering Arcellx provided consensus estimates of US$109m revenue in 2024, which would reflect a not inconsiderable 17% decline on its sales over the past 12 months. Losses are supposed to balloon 90% to US$1.80 per share. However, before this estimates update, the consensus had been expecting revenues of US$96m and US$1.89 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.

View our latest analysis for Arcellx

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. We would highlight that sales are expected to reverse, with a forecast 22% annualised revenue decline to the end of 2024. That is a notable change from historical growth of 635% over the last year. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 18% annually for the foreseeable future. It's pretty clear that Arcellx's revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The most important thing here is that analysts reduced their loss per share estimates for this year, reflecting increased optimism around Arcellx's prospects. 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 Arcellx.

Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. We have estimates - from multiple Arcellx analysts - going out to 2026, and you can see them 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 backed by insiders.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.