Analysts' Revenue Estimates For CymaBay Therapeutics, Inc. (NASDAQ:CBAY) Are Surging Higher

Celebrations may be in order for CymaBay Therapeutics, Inc. (NASDAQ:CBAY) shareholders, with the analysts delivering a significant upgrade to their statutory estimates for the company. The analysts have sharply increased their revenue numbers, with a view that CymaBay Therapeutics will make substantially more sales than they'd previously expected.

Following the latest upgrade, the current consensus, from the eleven analysts covering CymaBay Therapeutics, is for revenues of US$19m in 2024, which would reflect a painful 40% reduction in CymaBay Therapeutics' sales over the past 12 months. Losses are supposed to balloon 70% to US$1.35 per share. Yet before this consensus update, the analysts had been forecasting revenues of US$14m and losses of US$1.34 per share in 2024. So there's been quite a change-up of views after the recent consensus updates, withthe analysts noticeably increasing their revenue forecasts while also expecting losses per share to hold steady.

View our latest analysis for CymaBay Therapeutics

The consensus price target held steady at US$25.82 despite the upgrade to revenue forecasts and ongoing losses. Analysts seem to think the business is otherwise performing roughly in line with expectations.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We would highlight that sales are expected to reverse, with a forecast 34% annualised revenue decline to the end of 2024. That is a notable change from historical growth of 87% 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 8.5% per year. It's pretty clear that CymaBay Therapeutics' 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 next year, reflecting increased optimism around CymaBay Therapeutics' prospects. Pleasantly, analysts also upgraded their revenue estimates, and their forecasts suggest the business is expected 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 CymaBay Therapeutics.

Still, the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for CymaBay Therapeutics going out to 2025, 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.