Growth Investors: Industry Analysts Just Upgraded Their Editas Medicine, Inc. (NASDAQ:EDIT) Revenue Forecasts By 11%

Shareholders in Editas Medicine, Inc. (NASDAQ:EDIT) may be thrilled to learn that the analysts have just delivered a major upgrade to their near-term forecasts. The consensus estimated revenue numbers rose, with their view now clearly much more bullish on the company's business prospects.

After the upgrade, the consensus from Editas Medicine's eight analysts is for revenues of US$24m in 2021, which would reflect a sizeable 74% decline in sales compared to the last year of performance. Per-share losses are expected to explode, reaching US$3.46 per share. Yet before this consensus update, the analysts had been forecasting revenues of US$22m and losses of US$3.52 per share in 2021. So there's definitely been a change in sentiment in this update, with the analysts upgrading this year's revenue estimates, while at the same time holding losses per share steady.

View our latest analysis for Editas Medicine

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. We would highlight that sales are expected to reverse, with a forecast 74% annualised revenue decline to the end of 2021. That is a notable change from historical growth of 53% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 19% annually for the foreseeable future. It's pretty clear that Editas Medicine's revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The most important thing here is that analysts reduced their loss per share estimates for this year, reflecting increased optimism around Editas Medicine's prospects. Pleasantly, analysts also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow slower than the wider market. Seeing the dramatic upgrade to this year's forecasts, it might be time to take another look at Editas Medicine.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Editas Medicine analysts - going out to 2025, and you can see them free on our platform here.

Another way to search for interesting companies that could be reaching an inflection point is to track whether management are buying or selling, with our free list of growing companies that insiders are buying.

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