Analysts Have Just Cut Their Cue Biopharma, Inc. (NASDAQ:CUE) Revenue Estimates By 23%

The latest analyst coverage could presage a bad day for Cue Biopharma, Inc. (NASDAQ:CUE), with the analysts making across-the-board cuts to their statutory estimates that might leave shareholders a little shell-shocked. There was a fairly draconian cut to their revenue estimates, perhaps an implicit admission that previous forecasts were much too optimistic.

Following the downgrade, the consensus from six analysts covering Cue Biopharma is for revenues of US$8.9m in 2022, implying a substantial 38% decline in sales compared to the last 12 months. Losses are supposed to balloon 26% to US$1.64 per share. Yet prior to the latest estimates, the analysts had been forecasting revenues of US$12m and losses of US$1.61 per share in 2022. 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 making no real change to the loss per share numbers.

See our latest analysis for Cue Biopharma

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. We would highlight that sales are expected to reverse, with a forecast 47% annualised revenue decline to the end of 2022. That is a notable change from historical growth of 65% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 12% per year. It's pretty clear that Cue Biopharma's revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

Unfortunately analysts also downgraded their revenue estimates, and industry data suggests that Cue Biopharma's revenues are expected to grow slower than the wider market. Often, one downgrade can set off a daisy-chain of cuts, especially if an industry is in decline. So we wouldn't be surprised if the market became a lot more cautious on Cue Biopharma after today.

Still, the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Cue Biopharma analysts - going out to 2024, 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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