C4 Therapeutics, Inc. (NASDAQ:CCCC) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's statutory forecasts. The analysts have sharply increased their revenue numbers, with a view that C4 Therapeutics will make substantially more sales than they'd previously expected.
After the upgrade, the consensus from C4 Therapeutics' three analysts is for revenues of US$23m in 2021, which would reflect a painful 31% decline in sales compared to the last year of performance. The loss per share is anticipated to greatly reduce in the near future, narrowing 32% to US$2.28. Yet before this consensus update, the analysts had been forecasting revenues of US$14m and losses of US$2.45 per share in 2021. So there's been quite a change-up of views after the recent consensus updates, with the analysts making a sizeable increase to their revenue forecasts while also reducing the estimated loss as the business grows towards breakeven.
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 39% annualised revenue decline to the end of 2021. That is a notable change from historical growth of 39% over the last year. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 13% per year. It's pretty clear that C4 Therapeutics' revenues are expected to perform substantially worse than the wider industry.
The Bottom Line
The highlight for us was that the consensus reduced its estimated losses this year, perhaps suggesting C4 Therapeutics is moving incrementally towards profitability. Pleasantly, analysts also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow slower than the wider market. Seeing the dramatic upgrade to this year's forecasts, it might be time to take another look at C4 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 C4 Therapeutics going out to 2025, and you can see them free on our platform here..
Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are upgrading their estimates. So you may also wish to search this free list of stocks that insiders are buying.
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What are the risks and opportunities for C4 Therapeutics?
Revenue is forecast to grow 61.28% per year
Volatile share price over the past 3 months
Currently unprofitable and not forecast to become profitable over the next 3 years
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C4 Therapeutics, Inc., a clinical-stage biopharmaceutical company, develops novel therapeutic candidates to degrade disease-causing proteins for the treatment of cancer, neurodegenerative conditions, and other diseases.
Excellent balance sheet and slightly overvalued.