Caribou Biosciences, Inc. (NASDAQ:CRBU) First-Quarter Results: Here's What Analysts Are Forecasting For This Year

It's been a good week for Caribou Biosciences, Inc. (NASDAQ:CRBU) shareholders, because the company has just released its latest first-quarter results, and the shares gained 4.1% to US$8.10. Revenues of US$2.7m fell short of estimates by 17%, but statutory losses were relatively mild, coming in 7.2% smaller than the analysts expected, at US$0.32 per share. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Caribou Biosciences after the latest results.

See our latest analysis for Caribou Biosciences

Following the latest results, Caribou Biosciences' seven analysts are now forecasting revenues of US$13.0m in 2022. This would be a huge 21% improvement in sales compared to the last 12 months. Per-share losses are expected to explode, reaching US$1.50 per share. Before this earnings announcement, the analysts had been modelling revenues of US$12.9m and losses of US$1.55 per share in 2022. It looks like there's been a modest increase in sentiment in the recent updates, with the analysts becoming a bit more optimistic in their predictions for losses per share, even though the revenue numbers were unchanged.

There's been no major changes to the consensus price target of US$27.43, suggesting that reduced loss estimates are not enough to have a long-term positive impact on the stock's 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 Caribou Biosciences at US$36.00 per share, while the most bearish prices it at US$19.00. 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.

Of course, another way to look at these forecasts is to place them into context against the industry itself. For example, we noticed that Caribou Biosciences' rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 30% growth to the end of 2022 on an annualised basis. That is well above its historical decline of 13% a year over the past year. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 12% annually. Not only are Caribou Biosciences' revenues expected to improve, it seems that the analysts are also expecting it to grow faster than the wider industry.

The Bottom Line

The most obvious conclusion is that the analysts made no changes to their forecasts for a loss next year. Happily, there were no major changes to revenue forecasts, with the business still expected 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. We have estimates - from multiple Caribou Biosciences analysts - going out to 2024, and you can see them free on our platform here.

Plus, you should also learn about the 3 warning signs we've spotted with Caribou Biosciences (including 1 which can't be ignored) .

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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.