Here's What Analysts Are Forecasting For CRISPR Therapeutics AG (NASDAQ:CRSP) After Its Third-Quarter Results

It's been a good week for CRISPR Therapeutics AG (NASDAQ:CRSP) shareholders, because the company has just released its latest quarterly results, and the shares gained 5.8% to US$50.72. Revenues came in at US$602k, a whole 92% below what the analysts were forecasting. Losses were a (relative) bright spot by comparison, with a per-share (statutory) loss of US$1.01 substantially smaller than what was 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

View our latest analysis for CRISPR Therapeutics

Taking into account the latest results, the 23 analysts covering CRISPR Therapeutics provided consensus estimates of US$168.1m revenue in 2025, which would reflect a not inconsiderable 17% decline over the past 12 months. Per-share losses are expected to explode, reaching US$5.13 per share. Before this latest report, the consensus had been expecting revenues of US$257.7m and US$5.62 per share in losses. So there's been quite a change-up of views after the recent consensus updates, withthe analysts making a serious cut to their revenue forecasts while also reducing the estimated losses the business will incur.

There was no major change to the US$81.79average price target, suggesting that the adjustments to revenue and earnings are not expected to have a long-term impact on the business. 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$199 per share, while the most pessimistic values it at US$30.00. As you can see the range of estimates is wide, with the lowest valuation coming in at less than half the most bullish estimate, suggesting there are some strongly diverging views on how analysts think this business will perform. 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.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. Over the past five years, revenues have declined around 7.0% annually. Worse, forecasts are essentially predicting the decline to accelerate, with the estimate for an annualised 14% decline in revenue until the end of 2025. Compare this against analyst estimates for companies in the broader industry, which suggest that revenues (in aggregate) are expected to grow 21% annually. So while a broad number of companies are forecast to grow, unfortunately CRISPR Therapeutics is expected to see its revenue affected worse than other companies in the industry.

The Bottom Line

The most obvious conclusion is that the analysts made no changes to their forecasts for a loss next year. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse than the wider industry. Still, earnings per share are more important to value creation for shareholders. 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 in mind, we wouldn't be too quick to come to a conclusion on CRISPR Therapeutics. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple CRISPR Therapeutics analysts - going out to 2026, and you can see them free on our platform here.

You still need to take note of risks, for example - CRISPR Therapeutics has 2 warning signs we think 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.