G1 Therapeutics, Inc. (NASDAQ:GTHX) First-Quarter Results: Here's What Analysts Are Forecasting For This Year

Shareholders of G1 Therapeutics, Inc. (NASDAQ:GTHX) will be pleased this week, given that the stock price is up 13% to US$4.49 following its latest quarterly results. It was a moderately negative result overall - revenue fell 4.0% short of analyst estimates at US$14m, and statutory losses were in line with analyst expectations, at US$0.20 per share. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on G1 Therapeutics after the latest results.

See our latest analysis for G1 Therapeutics

Taking into account the latest results, the current consensus, from the five analysts covering G1 Therapeutics, is for revenues of US$69.4m in 2024. This implies a not inconsiderable 17% reduction in G1 Therapeutics' revenue over the past 12 months. Losses are expected to hold steady at around US$0.59. Before this earnings announcement, the analysts had been modelling revenues of US$68.9m and losses of US$0.67 per share in 2024. While the revenue estimates were largely unchanged, sentiment seems to have improved, with the analysts upgrading their numbers and making a notable improvement in losses per share in particular.

The average price target held steady at US$8.50, seeming to indicate that business is performing in line with expectations. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on G1 Therapeutics, with the most bullish analyst valuing it at US$12.00 and the most bearish at US$5.00 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.

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 revenue is expected to reverse, with a forecast 23% annualised decline to the end of 2024. That is a notable change from historical growth of 45% 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 18% annually for the foreseeable future. It's pretty clear that G1 Therapeutics' 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. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that G1 Therapeutics' revenue is expected to perform worse than the wider industry. The consensus price target held steady at US$8.50, with the latest estimates not enough to have an impact on their price targets.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple G1 Therapeutics analysts - going out to 2026, and you can see them free on our platform here.

Plus, you should also learn about the 1 warning sign we've spotted with G1 Therapeutics .

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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.