CRISPR Therapeutics AG (NASDAQ:CRSP) Just Reported Second-Quarter Earnings And Analysts Are Lifting Their Estimates

CRISPR Therapeutics AG (NASDAQ:CRSP) just released its latest quarterly results and things are looking bullish. Revenues of US$10m beat estimates by a substantial 37% margin. Unfortunately, CRISPR Therapeutics also reported a statutory loss of US$0.94 per share, which at least was smaller than the analysts expected. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

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Taking into account the latest results, the most recent consensus for CRISPR Therapeutics from 17 analysts is for revenues of US$54.4m in 2026. If met, it would imply a substantial 306% increase on its revenue over the past 12 months. The loss per share is expected to ameliorate slightly, reducing to US$4.39. Yet prior to the latest earnings, the analysts had been forecasting revenues of US$40.1m and losses of US$4.89 per share in 2026. 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.

Check out our latest analysis for CRISPR Therapeutics

Despite these upgrades,the analysts have not made any major changes to their price target of US$87.17, implying that their latest estimates don't have a long term impact on what they think the stock is worth. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic CRISPR Therapeutics analyst has a price target of US$291 per share, while the most pessimistic values it at US$44.00. So we wouldn't be assigning too much credibility to analyst price targets in this case, because there are clearly some widely different views on what kind of performance this business can generate. With this in mind, we wouldn't rely too heavily the consensus price target, as it is just an average and analysts clearly have some deeply divergent views on the business.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. One thing stands out from these estimates, which is that CRISPR Therapeutics is forecast to grow faster in the future than it has in the past, with revenues expected to display 15x annualised growth until the end of 2026. If achieved, this would be a much better result than the 60% annual decline over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 23% annually. So it looks like CRISPR Therapeutics is expected to grow faster than its competitors, at least for a while.

The Bottom Line

The most important thing to take away is that the analysts reconfirmed their loss per share estimates for next year. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. The consensus price target held steady at US$87.17, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates - from multiple CRISPR Therapeutics analysts - going out to 2028, and you can see them free on our platform here.

We also provide an overview of the CRISPR Therapeutics Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, 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.