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

SpringWorks Therapeutics, Inc. (NASDAQ:SWTX) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's statutory forecasts. The revenue forecast for this year has experienced a facelift, with analysts now much more optimistic on its sales pipeline.

Following the upgrade, the latest consensus from SpringWorks Therapeutics' seven analysts is for revenues of US$141m in 2024, which would reflect a substantial 433% improvement in sales compared to the last 12 months. Losses are forecast to hold steady at around US$4.59 per share. However, before this estimates update, the consensus had been expecting revenues of US$126m and US$4.87 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 SpringWorks Therapeutics

There was no major change to the consensus price target of US$67.92, perhaps suggesting that the analysts remain concerned about ongoing losses despite the improved earnings and revenue outlook.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's clear from the latest estimates that SpringWorks Therapeutics' rate of growth is expected to accelerate meaningfully, with the forecast 8x annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 6.6% p.a. 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 19% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that SpringWorks Therapeutics is expected to grow much faster than its industry.

The Bottom Line

The highlight for us was that the consensus reduced its estimated losses this year, perhaps suggesting SpringWorks Therapeutics is moving incrementally towards profitability. Fortunately, analysts also upgraded their revenue estimates, and our data indicates sales are expected to perform better than the wider market. Seeing the dramatic upgrade to this year's forecasts, it might be time to take another look at SpringWorks Therapeutics.

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

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.