Need To Know: Analysts Are Much More Bullish On Jounce Therapeutics, Inc. (NASDAQ:JNCE) Revenues

Celebrations may be in order for Jounce Therapeutics, Inc. (NASDAQ:JNCE) shareholders, with the analysts delivering a significant upgrade to their statutory estimates for the company. The analysts have sharply increased their revenue numbers, with a view that Jounce Therapeutics will make substantially more sales than they'd previously expected.

Following the upgrade, the consensus from seven analysts covering Jounce Therapeutics is for revenues of US$26m in 2021, implying a substantial 60% decline in sales compared to the last 12 months. Per-share losses are expected to explode, reaching US$1.87 per share. However, before this estimates update, the consensus had been expecting revenues of US$22m and US$1.93 per share in losses. We can see there's definitely been a change in sentiment in this update, with the analysts administering a sizeable upgrade to this year's revenue estimates, while at the same time reducing their loss estimates.

View our latest analysis for Jounce Therapeutics

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Jounce Therapeutics' past performance and to peers in the same industry. These estimates imply that sales are expected to slow, with a forecast annualised revenue decline of 70% by the end of 2021. This indicates a significant reduction from annual growth of 18% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 13% per year. It's pretty clear that Jounce Therapeutics' 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 Jounce Therapeutics' prospects. Fortunately, they also upgraded their revenue estimates, and are forecasting revenues 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 Jounce Therapeutics.

Analysts are definitely bullish on Jounce Therapeutics, but no company is perfect. Indeed, you should know that there are several potential concerns to be aware of, including major dilution from new stock issuance in the past year. You can learn more, and discover the 2 other risks we've identified, for 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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