These Analysts Think Cytokinetics, Incorporated's (NASDAQ:CYTK) Sales Are Under Threat

One thing we could say about the analysts on Cytokinetics, Incorporated (NASDAQ:CYTK) - they aren't optimistic, having just made a major negative revision to their near-term (statutory) forecasts for the organization. Revenue estimates were cut sharply as analysts signalled a weaker outlook - perhaps a sign that investors should temper their expectations as well.

After this downgrade, Cytokinetics' 19 analysts are now forecasting revenues of US$35m in 2025. This would be a major 89% improvement in sales compared to the last 12 months. Per-share losses are expected to see a sharp uptick, reaching US$5.72. However, before this estimates update, the consensus had been expecting revenues of US$48m and US$5.33 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 Cytokinetics

The consensus price target was broadly unchanged at US$79.10, perhaps implicitly signalling that the weaker earnings outlook is not expected to have a long-term impact on the valuation.

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. One thing stands out from these estimates, which is that Cytokinetics is forecast to grow faster in the future than it has in the past, with revenues expected to display 89% annualised growth until the end of 2025. If achieved, this would be a much better result than the 12% 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 20% annually. Not only are Cytokinetics' revenues expected to improve, it seems that the analysts are also expecting it to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that analysts increased their loss per share estimates for this year. Unfortunately, analysts also downgraded their revenue estimates, although our data indicates revenues are expected to perform better than the wider market. Overall, given the drastic downgrade to this year's forecasts, we'd be feeling a little more wary of Cytokinetics going forwards.

Still, the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Cytokinetics analysts - going out to 2027, and you can see them free on our platform here.

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