Sangamo Therapeutics, Inc. (NASDAQ:SGMO) Just Released Its Yearly Results And Analysts Are Updating Their Estimates

Sangamo Therapeutics, Inc. (NASDAQ:SGMO) just released its latest yearly report and things are not looking great. The numbers were fairly weak, with sales of US$118m missing analyst predictions by 4.5%, and (statutory) losses of US$0.90 per share being slightly larger than what the analysts had expected. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

Check out our latest analysis for Sangamo Therapeutics

Taking into account the latest results, the current consensus, from the ten analysts covering Sangamo Therapeutics, is for revenues of US$104.0m in 2021, which would reflect an uneasy 12% reduction in Sangamo Therapeutics' sales over the past 12 months. Per-share losses are expected to explode, reaching US$1.20 per share. Before this latest report, the consensus had been expecting revenues of US$104.1m and US$1.07 per share in losses. So it's pretty clear the analysts have mixed opinions on Sangamo Therapeutics even after this update; although they reconfirmed their revenue numbers, it came at the cost of a notable increase in per-share losses.

As a result, there was no major change to the consensus price target of US$21.11, 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. The most optimistic Sangamo Therapeutics analyst has a price target of US$36.00 per share, while the most pessimistic values it at US$12.00. With such a wide range in price targets, analysts are almost certainly betting on widely divergent outcomes in the underlying business. As a result it might not be a great idea to make decisions based on the consensus price target, which is after all just an average of this wide range of estimates.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Sangamo Therapeutics' past performance and to peers in the same industry. We would highlight that sales are expected to reverse, with the forecast 12% revenue decline a notable change from historical growth of 36% 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 Sangamo Therapeutics' revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The most important thing to take away is that the analysts increased their loss per share estimates for next year. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting sales are tracking in line with expectations - although our data does suggest that Sangamo Therapeutics' revenues are expected to perform worse 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.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Sangamo Therapeutics going out to 2025, and you can see them free on our platform here..

Plus, you should also learn about the 5 warning signs we've spotted with Sangamo Therapeutics (including 1 which is a bit concerning) .

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