Newsflash: CytomX Therapeutics, Inc. (NASDAQ:CTMX) Analysts Have Been Trimming Their Revenue Forecasts

Market forces rained on the parade of CytomX Therapeutics, Inc. (NASDAQ:CTMX) shareholders today, when the analysts downgraded their forecasts for this year. Revenue estimates were cut sharply as analysts signalled a weaker outlook - perhaps a sign that investors should temper their expectations as well.

After the downgrade, the consensus from CytomX Therapeutics' seven analysts is for revenues of US$47m in 2023, which would reflect a considerable 11% decline in sales compared to the last year of performance. Losses are predicted to fall substantially, shrinking 48% to US$0.78. However, before this estimates update, the consensus had been expecting revenues of US$60m and US$0.72 per share in losses. So there's been quite a change-up of views after the recent consensus updates, with the analysts making a serious cut to their revenue forecasts while also expecting losses per share to increase.

Check out our latest analysis for CytomX Therapeutics

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. Over the past five years, revenues have declined around 1.4% annually. Worse, forecasts are essentially predicting the decline to accelerate, with the estimate for an annualised 11% decline in revenue until the end of 2023. Compare this against analyst estimates for companies in the broader industry, which suggest that revenues (in aggregate) are expected to grow 13% annually. So while a broad number of companies are forecast to grow, unfortunately CytomX Therapeutics is expected to see its sales affected worse than other companies in the industry.

The Bottom Line

The most important thing to note from this downgrade is that the consensus increased its forecast losses this year, suggesting all may not be well at CytomX Therapeutics. Unfortunately analysts also downgraded their revenue estimates, and industry data suggests that CytomX Therapeutics' revenues are expected to grow slower than the wider market. Given the stark change in sentiment, we'd understand if investors became more cautious on CytomX Therapeutics after today.

Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. At Simply Wall St, we have a full range of analyst estimates for CytomX 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 downgrading their estimates. So you may also wish to search this free list of stocks that insiders are buying.

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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.