Day One Biopharmaceuticals, Inc. (NASDAQ:DAWN) Just Released Its Third-Quarter Earnings: Here's What Analysts Think

Day One Biopharmaceuticals, Inc. (NASDAQ:DAWN) just released its latest quarterly results and things are looking bullish. Revenues and losses per share were both better than expected, with revenues of US$40m leading estimates by 5.2%. Statutory losses were smaller than the analystsexpected, coming in at US$0.19 per share. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

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Taking into account the latest results, the most recent consensus for Day One Biopharmaceuticals from ten analysts is for revenues of US$220.5m in 2026. If met, it would imply a substantial 65% increase on its revenue over the past 12 months. Losses are predicted to fall substantially, shrinking 60% to US$0.59. Before this earnings announcement, the analysts had been modelling revenues of US$216.1m and losses of US$0.70 per share in 2026. There's been a pretty noticeable increase in sentiment, with the analysts upgrading revenues and making a notable improvement in loss per share in particular.

See our latest analysis for Day One Biopharmaceuticals

Despite these upgrades,the analysts have not made any major changes to their price target of US$23.78, implying that their latest estimates don't have a long term impact on what they think the stock is worth. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on Day One Biopharmaceuticals, with the most bullish analyst valuing it at US$34.00 and the most bearish at US$16.00 per share. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Day One Biopharmaceuticals' past performance and to peers in the same industry. We would highlight that Day One Biopharmaceuticals' revenue growth is expected to slow, with the forecast 49% annualised growth rate until the end of 2026 being well below the historical 92% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 21% per year. So it's pretty clear that, while Day One Biopharmaceuticals' revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

The Bottom Line

The most obvious conclusion is that the analysts made no changes to their forecasts for a loss next year. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. The consensus price target held steady at US$23.78, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on Day One Biopharmaceuticals. Long-term earnings power is much more important than next year's profits. We have forecasts for Day One Biopharmaceuticals going out to 2027, and you can see them free on our platform here.

We also provide an overview of the Day One Biopharmaceuticals Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, here.

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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.