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Capricor Therapeutics, Inc. (NASDAQ:CAPR) just released its latest quarterly report and things are not looking great. It was not a great statutory result, with revenues coming in 100% lower than the analysts predicted. Unsurprisingly, earnings also fell seriously short of forecasts, turning into a per-share loss of US$0.53. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
Following the latest results, Capricor Therapeutics' seven analysts are now forecasting revenues of US$85.2m in 2025. This would be a major 391% improvement in revenue compared to the last 12 months. Losses are predicted to fall substantially, shrinking 65% to US$0.42. Before this latest report, the consensus had been expecting revenues of US$63.3m and US$0.57 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.
See our latest analysis for Capricor Therapeutics
There was no major change to the consensus price target of US$43.71, perhaps suggesting that the analysts remain concerned about ongoing losses despite the improved earnings and revenue outlook. 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. Currently, the most bullish analyst values Capricor Therapeutics at US$77.00 per share, while the most bearish prices it at US$25.00. With such a wide range in price targets, analysts are almost certainly betting on widely divergent outcomes in the underlying business. With this in mind, we wouldn't rely too heavily the consensus price target, as it is just an average and analysts clearly have some deeply divergent views on the business.
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 Capricor Therapeutics' rate of growth is expected to accelerate meaningfully, with the forecast 7x annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 68% 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 17% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Capricor Therapeutics is expected to grow much faster than its industry.