Analysts Have Just Cut Their Atara Biotherapeutics, Inc. (NASDAQ:ATRA) Revenue Estimates By 16%

Today is shaping up negative for Atara Biotherapeutics, Inc. (NASDAQ:ATRA) shareholders, with the analysts delivering a substantial negative revision to next year's forecasts. This report focused on revenue estimates, and it looks as though the consensus view of the business has become substantially more conservative.

Following the latest downgrade, the current consensus, from the seven analysts covering Atara Biotherapeutics, is for revenues of US$42m in 2023, which would reflect a sizeable 41% reduction in Atara Biotherapeutics' sales over the past 12 months. Prior to the latest estimates, the analysts were forecasting revenues of US$49m in 2023. It looks like forecasts have become a fair bit less optimistic on Atara Biotherapeutics, given the measurable cut to revenue estimates.

Check out the opportunities and risks within the US Biotechs industry.

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. These estimates imply that sales are expected to slow, with a forecast annualised revenue decline of 35% by the end of 2023. This indicates a significant reduction from annual growth of 94% 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 14% per year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Atara Biotherapeutics is expected to lag the wider industry.

The Bottom Line

The most important thing to take away is that analysts cut their revenue estimates for next year. They also expect company revenue to perform worse than the wider market. Given the stark change in sentiment, we'd understand if investors became more cautious on Atara Biotherapeutics after today.

But wait - there's more! We have estimates for Atara Biotherapeutics from its seven analysts out until 2024, and you can see them free on our platform here.

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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.