Kymera Therapeutics, Inc. (NASDAQ:KYMR) Annual Results: Here's What Analysts Are Forecasting For This Year

The analysts might have been a bit too bullish on Kymera Therapeutics, Inc. (NASDAQ:KYMR), given that the company fell short of expectations when it released its yearly results last week. The numbers were weak, with revenues of US$47m coming in 13% short of analyst estimates. Statutory losses were US$2.98 per share, 4.8% larger than what the analysts expected. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Kymera Therapeutics after the latest results.

See our latest analysis for Kymera Therapeutics

After the latest results, the 16 analysts covering Kymera Therapeutics are now predicting revenues of US$68.0m in 2025. If met, this would reflect a substantial 45% improvement in revenue compared to the last 12 months. Per-share losses are supposed to see a sharp uptick, reaching US$3.81. Before this latest report, the consensus had been expecting revenues of US$69.2m and US$3.37 per share in losses. So it's pretty clear the analysts have mixed opinions on Kymera Therapeutics even after this update; although they reconfirmed their revenue numbers, it came at the cost of a noticeable increase in per-share losses.

As a result, there was no major change to the consensus price target of US$58.37, with the analysts implicitly confirming that the business looks to be performing in line with expectations, despite higher forecast losses. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on Kymera Therapeutics, with the most bullish analyst valuing it at US$97.00 and the most bearish at US$41.00 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. The analysts are definitely expecting Kymera Therapeutics' growth to accelerate, with the forecast 45% annualised growth to the end of 2025 ranking favourably alongside historical growth of 23% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 20% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Kymera Therapeutics is expected to grow much faster than its industry.

The Bottom Line

The most important thing to note is the forecast of increased losses next year, suggesting all may not be well at Kymera Therapeutics. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

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. At Simply Wall St, we have a full range of analyst estimates for Kymera Therapeutics going out to 2027, and you can see them free on our platform here..

And what about risks? Every company has them, and we've spotted 2 warning signs for Kymera Therapeutics (of which 1 is a bit concerning!) you should know about.

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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.