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Arcus Biosciences, Inc. (NYSE:RCUS) defied analyst predictions to release its third-quarter results, which were ahead of market expectations. Overall results were decent, with revenues of US$48m beating estimates by23%. Statutory losses were subsequently less thanthe analysts had expected, at US$1.00 per share. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Arcus Biosciences after the latest results.
View our latest analysis for Arcus Biosciences
Following the recent earnings report, the consensus from ten analysts covering Arcus Biosciences is for revenues of US$217.1m in 2025. This implies an uncomfortable 17% decline in revenue compared to the last 12 months. Losses are forecast to balloon 39% to US$4.12 per share. Before this earnings announcement, the analysts had been modelling revenues of US$218.4m and losses of US$4.04 per share in 2025.
The consensus price target was unchanged at US$33.20, suggesting that the business - losses and all - is executing in line with estimates. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic Arcus Biosciences analyst has a price target of US$46.00 per share, while the most pessimistic values it at US$20.00. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.
Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We would highlight that revenue is expected to reverse, with a forecast 14% annualised decline to the end of 2025. That is a notable change from historical growth of 28% 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 21% annually for the foreseeable future. It's pretty clear that Arcus Biosciences' 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 reconfirmed their loss per share estimates for next year. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Arcus Biosciences' revenue is expected to perform worse than the wider industry. The consensus price target held steady at US$33.20, with the latest estimates not enough to have an impact on their price targets.