BridgeBio Pharma, Inc. (NASDAQ:BBIO) Just Released Its Second-Quarter Earnings: Here's What Analysts Think

As you might know, BridgeBio Pharma, Inc. (NASDAQ:BBIO) recently reported its second-quarter numbers. Revenues came in 25% better than analyst models expected, at US$111m, although statutory losses were 13% larger than expected, at US$0.95 per share. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

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Taking into account the latest results, the most recent consensus for BridgeBio Pharma from 20 analysts is for revenues of US$470.4m in 2025. If met, it would imply a huge 99% increase on its revenue over the past 12 months. Losses are supposed to decline, shrinking 19% from last year to US$3.27. Before this earnings announcement, the analysts had been modelling revenues of US$444.9m and losses of US$2.97 per share in 2025. While this year's revenue estimates increased, there was also a notable increase in loss per share expectations, suggesting the consensus has a bit of a mixed view on the stock.

Check out our latest analysis for BridgeBio Pharma

The consensus price target stayed unchanged at US$61.91, seeming to suggest that higher forecast losses are not expected to have a long term impact on the valuation. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values BridgeBio Pharma at US$95.00 per share, while the most bearish prices it at US$41.00. 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.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the BridgeBio Pharma's past performance and to peers in the same industry. It's clear from the latest estimates that BridgeBio Pharma's rate of growth is expected to accelerate meaningfully, with the forecast 298% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 41% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 19% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that BridgeBio Pharma is expected to grow much faster than its industry.

The Bottom Line

The most important thing to note is the forecast of increased losses next year, suggesting all may not be well at BridgeBio Pharma. Happily, they also upgraded their revenue estimates, and are forecasting them to grow faster than the wider 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.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for BridgeBio Pharma going out to 2027, and you can see them free on our platform here..

However, before you get too enthused, we've discovered 1 warning sign for BridgeBio Pharma that you should be aware of.

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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.