Analysts' Revenue Estimates For Entrada Therapeutics, Inc. (NASDAQ:TRDA) Are Surging Higher

Celebrations may be in order for Entrada Therapeutics, Inc. (NASDAQ:TRDA) shareholders, with the analysts delivering a significant upgrade to their statutory estimates for the company. The revenue forecast for this year has experienced a facelift, with analysts now much more optimistic on its sales pipeline.

Following the latest upgrade, the current consensus, from the four analysts covering Entrada Therapeutics, is for revenues of US$175m in 2024, which would reflect a sizeable 27% reduction in Entrada Therapeutics' sales over the past 12 months. Before the latest update, the analysts were foreseeing US$144m of revenue in 2024. The consensus has definitely become more optimistic, showing a great increase in revenue forecasts.

See our latest analysis for Entrada Therapeutics

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. These estimates imply that sales are expected to slow, with a forecast annualised revenue decline of 46% by the end of 2024. This indicates a significant reduction from annual growth of 131% over the last three years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 24% per year. It's pretty clear that Entrada Therapeutics' revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The most important thing to take away from this upgrade is that analysts lifted their revenue estimates for this year. They're also anticipating slower revenue growth than the wider market. Seeing the dramatic upgrade to this year's forecasts, it might be time to take another look at Entrada Therapeutics.

These earnings upgrades look like a sterling endorsement, but before diving in - you should know that we've spotted 2 potential warning sign with Entrada Therapeutics, including dilutive stock issuance over the past year. You can learn more, and discover the 1 other warning sign we've identified, for 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 with high insider ownership.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.