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Stoke Therapeutics, Inc. (NASDAQ:STOK) just released its latest annual results and things are looking bullish. Results clearly exceeded expectations, with a substantial revenue beat leading to smaller losses in what looks like a definite win for investors. Revenues were US$37m and the statutory loss per share was US$1.65, smaller than the analysts had forecast. 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 Stoke Therapeutics after the latest results.
Taking into account the latest results, the most recent consensus for Stoke Therapeutics from ten analysts is for revenues of US$68.2m in 2025. If met, it would imply a major 87% increase on its revenue over the past 12 months. Losses are predicted to fall substantially, shrinking 26% to US$1.21. Before this latest report, the consensus had been expecting revenues of US$53.8m and US$1.82 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 Stoke Therapeutics
Despite these upgrades,the analysts have not made any major changes to their price target of US$23.88, implying that their latest estimates don't have a long term impact on what they think the stock is worth. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on Stoke Therapeutics, with the most bullish analyst valuing it at US$47.00 and the most bearish at US$15.00 per share. With such a wide range in price targets, analysts are almost certainly betting on widely divergent outcomes in the underlying business. As a result it might not be a great idea to make decisions based on the consensus price target, which is after all just an average of this wide range of estimates.
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. It's clear from the latest estimates that Stoke Therapeutics' rate of growth is expected to accelerate meaningfully, with the forecast 87% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 66% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 20% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Stoke Therapeutics is expected to grow much faster than its industry.