New Forecasts: Here's What Analysts Think The Future Holds For G1 Therapeutics, Inc. (NASDAQ:GTHX)

Celebrations may be in order for G1 Therapeutics, Inc. (NASDAQ:GTHX) shareholders, with the analysts delivering a significant upgrade to their statutory estimates for the company. Consensus estimates suggest investors could expect greatly increased statutory revenues and earnings per share, with the analysts modelling a real improvement in business performance.

After the upgrade, the eight analysts covering G1 Therapeutics are now predicting revenues of US$74m in 2023. If met, this would reflect a substantial 29% improvement in sales compared to the last 12 months. Losses are predicted to fall substantially, shrinking 40% to US$1.46. However, before this estimates update, the consensus had been expecting revenues of US$59m and US$2.01 per share in losses. So there's been quite a change-up of views after the recent consensus updates, with the analysts making a sizeable increase to their revenue forecasts while also reducing the estimated loss as the business grows towards breakeven.

View our latest analysis for G1 Therapeutics

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. It's pretty clear that there is an expectation that G1 Therapeutics' revenue growth will slow down substantially, with revenues to the end of 2023 expected to display 41% growth on an annualised basis. This is compared to a historical growth rate of 55% over the past five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 17% per year. So it's pretty clear that, while G1 Therapeutics' revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

The Bottom Line

The most important thing here is that analysts reduced their loss per share estimates for this year, reflecting increased optimism around G1 Therapeutics' prospects. They also upgraded their revenue estimates for this year, and sales are expected to grow faster than the wider market. With a serious upgrade to expectations, it might be time to take another look at G1 Therapeutics.

Analysts are clearly in love with G1 Therapeutics at the moment, but before diving in - you should be aware that we've identified some warning flags with the business, such as dilutive stock issuance over the past year. For more information, you can click through to our platform to learn more about this and the 2 other warning signs we've identified .

Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are upgrading their estimates. So you may also wish to search this free list of stocks that insiders are buying.

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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.