Earnings Beat: Cue Biopharma, Inc. (NASDAQ:CUE) Just Beat Analyst Forecasts, And Analysts Have Been Lifting Their Forecasts

Cue Biopharma, Inc. (NASDAQ:CUE) investors will be delighted, with the company turning in some strong numbers with its latest results. Revenues of US$15m beat estimates by a substantial 62% margin. Unfortunately, Cue Biopharma also reported a statutory loss of US$1.41 per share, which at least was smaller than the analysts expected. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Cue Biopharma after the latest results.

View our latest analysis for Cue Biopharma

Taking into account the latest results, the current consensus, from the six analysts covering Cue Biopharma, is for revenues of US$10.8m in 2022, which would reflect a painful 28% reduction in Cue Biopharma's sales over the past 12 months. Losses are forecast to balloon 31% to US$1.75 per share. Before this latest report, the consensus had been expecting revenues of US$6.04m and US$1.79 per share in losses. We can see there's definitely been a change in sentiment in this update, with the analysts administering a sizeable upgrade to this year's revenue estimates, while at the same time reducing their loss estimates.

There was no major change to the consensus price target of US$27.14, perhaps suggesting that the analysts remain concerned about ongoing losses despite the improved earnings and revenue outlook. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Cue Biopharma at US$32.00 per share, while the most bearish prices it at US$20.00. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We would highlight that sales are expected to reverse, with a forecast 28% annualised revenue decline to the end of 2022. That is a notable change from historical growth of 66% 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 11% per year. It's pretty clear that Cue Biopharma's revenues are expected to perform substantially worse 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. They also upgraded their revenue estimates for next year, even though sales are expected to grow slower 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.

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 forecasts for Cue Biopharma going out to 2024, and you can see them free on our platform here.

And what about risks? Every company has them, and we've spotted 3 warning signs for Cue Biopharma you should know about.

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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.