Analysts Are Upgrading Editas Medicine, Inc. (NASDAQ:EDIT) After Its Latest Results

A week ago, Editas Medicine, Inc. (NASDAQ:EDIT) came out with a strong set of quarterly numbers that could potentially lead to a re-rate of the stock. Revenues of US$7.5m beat estimates by a substantial 53% margin. Unfortunately, Editas Medicine also reported a statutory loss of US$0.28 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. 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 twelve analysts covering Editas Medicine provided consensus estimates of US$16.0m revenue in 2026, which would reflect a painful 66% decline over the past 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 50% to US$1.02. Before this earnings announcement, the analysts had been modelling revenues of US$14.6m and losses of US$1.03 per share in 2026.

Check out our latest analysis for Editas Medicine

The consensus price target held steady at US$4.00despite the upgrade to revenue forecasts and ongoing losses. The analysts seems to think the business is otherwise performing roughly in line with expectations. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Editas Medicine analyst has a price target of US$6.00 per share, while the most pessimistic values it at US$1.00. With such a wide range in price targets, analysts are almost certainly betting on widely divergent outcomes in the underlying business. With this in mind, we wouldn't rely too heavily the consensus price target, as it is just an average and analysts clearly have some deeply divergent views on the business.

Of course, another way to look at these forecasts is to place them into context against the industry itself. One more thing stood out to us about these estimates, and it's the idea that Editas Medicine's decline is expected to accelerate, with revenues forecast to fall at an annualised rate of 57% to the end of 2026. This tops off a historical decline of 10% a year over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue grow 22% per year. So it's pretty clear that, while it does have declining revenues, the analysts also expect Editas Medicine to suffer worse than the wider industry.

The Bottom Line

The most important thing to take away is that the analysts reconfirmed their loss per share estimates for next year. They also upgraded their revenue estimates for next year, even though it is expected to grow slower than the wider industry. The consensus price target held steady at US$4.00, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Editas Medicine going out to 2027, and you can see them free on our platform here..

However, before you get too enthused, we've discovered 4 warning signs for Editas Medicine that you should be aware of.

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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.