Analysts Just Shipped A Stunning Upgrade To Their Zymeworks Inc. (NASDAQ:ZYME) Estimates

Zymeworks Inc. (NASDAQ:ZYME) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's statutory forecasts. Consensus estimates suggest investors could expect greatly increased statutory revenues and earnings per share, with analysts modelling a real improvement in business performance.

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Following the upgrade, the most recent consensus for Zymeworks from its seven analysts is for revenues of US$123m in 2025 which, if met, would be a huge 32% increase on its sales over the past 12 months. The loss per share is anticipated to greatly reduce in the near future, narrowing 23% to US$1.26. Yet before this consensus update, the analysts had been forecasting revenues of US$94m and losses of US$1.65 per share in 2025. 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 Zymeworks

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Zymeworks' past performance and to peers in the same industry. The analysts are definitely expecting Zymeworks' growth to accelerate, with the forecast 44% annualised growth to the end of 2025 ranking favourably alongside historical growth of 27% 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 17% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Zymeworks to grow faster 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 Zymeworks' prospects. They also upgraded their revenue estimates for this year, and sales are expected to grow faster than the wider market. With a serious upgrade to expectations, it might be time to take another look at Zymeworks.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Zymeworks analysts - going out to 2027, and you can see them 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 backed by insiders.

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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.